![]() ![]() ![]() “Unlike monetary policy,” writes Bernanke, “which can be adjusted quickly as needed, government spending and tax policies are not as easy to change.” The Fed has considerably more leverage in applying money as a tool for economic stimulus and relief-though, the author points out, there is a large political dimension to that enterprise. There is a large distinction between monetary policy, which concerns how targeted money can be used to strengthen an economy generally, and fiscal policy, which concerns where funds are spent-for example, the CARES Act promulgated during the pandemic to fund public health measures but also to support workers and businesses most harmed by the crisis. The former chair of the Federal Reserve examines how and why that organization works to control financial crises. ![]()
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