U.S. Monetary Policy In looking at the effectiveness of Monetary and Fiscal policies, it must be understood how the two relate to each other within the government structure. The Federal Open Market Committee - FOMC - is the most important monetary policy-making body of the Federal Reserve System. According to our text, Colander (2004) states, it is responsible for formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable …showed first 75 words of 1273 total…

…showed last 75 words of 1273 total…majority in the House of Representatives and Democrats, who controlled the Senate, have very different and opposite visions about ways to stimulate the U.S. economy. Republicans consider that economic growth is generated through investments by businesses, which were encouraged by cuts in taxes and tax rates. Democrats supported the proposal that stimulates consumer spending such as through tax rebates for low-income, extensions of unemployment insurance, and government spending to promote construction and other infrastructure.