Monetary and Fiscal Actions: A Test of Their Relative Importance in Economic Stabilization

Leonall C. Andersen · Jerry Lee Jordan

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Monetary Policy and Economic Impact Fiscal Policies and Political Economy Politics, Economics, and Education Policy

Abstract

High employment, rising output of goods and services, and relatively stable prices are three widely accepted national economic goals. Responsibility for economic stabilization actions to meet these goals has been assigned to monetary and fiscal authorities. The Federal Reserve System has the major responsibility for monetary management. Fiscal actions involve Federal Government spending plans and taxing provisions. Governmental units involved in fiscal actions are the Congress and the Administration, including the Treasury, the Bureau of the Budget, and the Council of Economic Advisers.

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