UMGC Monetary and Fiscal Policy Discussion

Should the government use monetary and fiscal policy to stabilize the economy, or should it adhere to policy rules and refrain from upsetting the economy? To answer this question, compare the view of Keynesian economics to Monetarist economists.

What would the Classicals have thought about the Fed’s handling of the financial crisis? Compare the Classicals’ view to the Monetarist view regarding the Fed’s handling of the financial crisis.

1. Reflection: the students should also include a paragraph in the initial response in their own words, using macroeconomic terminology, reflecting on what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life.