Monetary & Fiscal Policy Financial Terms & Definitions

23 terms in this topic

Monetary policy refers to the processes by which a central bank, such as the Federal Reserve, controls the money supply and interest rates to achieve macroeconomic goals like price stability and full employment. Fiscal policy involves government decisions on taxation and spending to influence economic conditions, often used alongside monetary policy to stabilize the economy.

B

Beige Book

The Beige Book, formally known as the Summary of Commentary on Current Economic Conditions by Federal Reserve District, is a…

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B

Budget deficit

A budget deficit occurs when a government’s total expenditures exceed its total revenues over a specific period, typically a fiscal…

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D

Discount rate

The discount rate is the interest rate that the Federal Reserve System charges commercial banks and other depository institutions for…

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D

Dot plot

The dot plot is a visual chart published by the Federal Open Market Committee (FOMC) that shows individual committee members’…

Full Definition
Beige Book The Beige Book, formally known as the Summary of Commentary on Current Economic Conditions by Federal Reserve District,… Budget deficit A budget deficit occurs when a government’s total expenditures exceed its total revenues over a specific period, typically… Debt ceiling The debt ceiling (also known as the debt limit) is a legal cap set by the United States… Discount rate The discount rate is the interest rate that the Federal Reserve System charges commercial banks and other depository… Dot plot The dot plot is a visual chart published by the Federal Open Market Committee (FOMC) that shows individual… Dual mandate The Dual Mandate is the primary policy directive given to the Federal Reserve System (the Fed), the central… Federal funds rate The federal funds rate is the interest rate at which depository institutions (such as banks and credit unions)… Federal Open Market Committee (FOMC) The Federal Open Market Committee (FOMC) is the monetary policy body of the Federal Reserve System in the… Federal Reserve Chair The Federal Reserve Chair is the head of the Board of Governors of the Federal Reserve System, the… Federal Reserve System The Federal Reserve System (often called the Fed) is the central bank of the United States. It was… Fiscal policy Fiscal policy refers to the use of government spending and taxation to influence the economy. It is one… Forward guidance Forward guidance is a communication tool used by central banks, such as the Federal Reserve, to inform the…