Eco203 Principles of Macroeconomics Week 4 Journal

Topics: Monetary policy, Economics, Money supply Pages: 2 (590 words) Published: August 20, 2013
When it comes to corporate business and the common business the government needs to intervene to make the playing field fair for everyone involved. When competitors seek out the next get big money merger or expansion, this is where I believe the government steps in. with the government putting in place regulation such as fiscal policy, and monetary policy, the grounds of society become equal to the groups of power that have greater economic influence.

My stand point on government regulation has become one of understanding. I never really took the time to understand what was going on within the government. Even more so I hear people talking in groups that; although I am not the foremost expert, I do know that the government is not solely out to “get us”.

If I was to be on the conservative side of the fence I would say that I want no spending of “my money” or tax money on libraries, new roads, school construction, senior centers, etc. I don’t want any debt. If the government didn’t spend money there would be not debt right?

I think that the project of money management on such a large scale proves there is going to be a few hiccups along the way. Promoting economic growth and stability from a monetary standpoint is a struggle in itself. The health of the economy and the impact of past, current and future monetary policy actions, the FOMC seems to be doing the best it can with GDP growth, employment/unemployment.

It is clear that the federal government guides the overall pace of economic activity, attempting to maintain steady growth, high levels of employment, and price stability. The only way to accomplish this is by adjusting spending and tax rates or managing the money supply and controlling the use of credit, it can slow down or speed up the economy's rate of growth; this would in turn, affecting the level of prices and employment. Fiscal policy or taxation through expenditure to influence the economy becomes necessary. The government budget can only...
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