Fiscal and Monetary Policy: Like Cousins
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Fiscal and Monetary Policy: Like Cousins To further complicate the already overly complex ways of government policy making, there are two tools used by the federal government to influence the United States economy. These are fiscal policies, such as the Budget Control Act of 2011, and monetary policies, like the Federal Reserve upping interest rates for short-term loans in 2010. They complicate policy making because fiscal policy is run by the legislative and executive branch, while the power of monetary policy is given to the Federal Reserve Board.