Central Banks engage upon easing and tightening. They handle the monetary policy for a nation. Government embark upon fiscal policy, ie spending.
In this video I discuss how these things can affect markets and thus our investing.
▶️ 3Speak
Central Banks engage upon easing and tightening. They handle the monetary policy for a nation. Government embark upon fiscal policy, ie spending.
In this video I discuss how these things can affect markets and thus our investing.
▶️ 3Speak
It's exactly what Jerome Powell has been stating "fiscal and momentary policy" so I don't know what to think anymore. For now, I think they are out of tools and have no choice but to rely on Congress.
Posted Using LeoFinance Beta
The Fed is screwed. They are backed into a corner with few options.
Of course, the fiscal will just be more spending which is needed. This thing cannot stand on its own.
Posted Using LeoFinance Beta
Bitcoin is my central bank
Posted Using LeoFinance Beta
Why not Hive?
Posted Using LeoFinance Beta
Your content has been voted as a part of Encouragement program. Keep up the good work!
Use Ecency daily to boost your growth on platform!
Support Ecency
Vote for Proposal
Delegate HP and earn more
HIVE is my social bank.
Can't wait to have DeFi on HIVE.
I guess we need to figure out a sustainable solution to HBD peg first.
Posted Using LeoFinance Beta
Governments handle all the fun stuff and spend money while the central bank does all the boring stuff - the clowning around version :)
Posted Using LeoFinance Beta
Yeah unfortunately, in the US at least, the bankers, as scummy as they are, are under the thumb of the politicians, who are scummier.
At least the bankers are clear in what they are and can predict what they will do. Politicians dangerous because they are clueless (most are lawyers anyway).
Posted Using LeoFinance Beta
Summary:
In this financial education video, the speaker discusses the differences between fiscal and monetary policy. He explains that monetary policy is controlled by central banks like the Federal Reserve and involves managing the currency, while fiscal policy involves government spending, particularly in the US Congress. The speaker delves into the impacts these policies can have on the economy and markets. He also touches on the historical context of these policies and their relevance in the current economic landscape.
Detailed Article:
The video focuses on dissecting the intricate relationship between fiscal and monetary policy, shedding light on how these policies play a vital role in shaping the economy and impacting financial markets. The speaker, without delving much into historical outcomes, delineates the primary functions and implications of both policies in the contemporary economic environment.
Beginning with monetary policy, the speaker elaborates that it is centrally orchestrated by institutions such as the Federal Reserve in the United States. The two primary mechanisms of monetary policy highlighted in the video are tightening and easing. Tightening refers to the withdrawal of money from the economy to prevent overheating, while easing involves injecting money into the economy to stimulate growth, especially during challenging economic circumstances. The speaker stresses that the decisions made by central banks regarding these policies can significantly influence market dynamics.
Shifting the discourse to fiscal policy, the speaker explains that this domain primarily concerns government spending, controlled by entities like the US Congress. Traditionally, fiscal policy has been utilized through stimulus packages during economic downturns and scaled down during periods of prosperity. However, the speaker points out a notable shift where government spending seems to be increasing steadily across various regions globally, irrespective of the economic conditions. The notion that fiscal policy is being leveraged more as a political tool to garner public favor rather than for purely economic purposes is highlighted.
Moreover, the speaker implies that with the economy evolving due to technological advancements and changing dynamics, the traditional impacts of these policies may need to be reevaluated. The interconnectedness of fiscal and monetary policy is emphasized, indicating how these policies collectively shape the economic landscape and have consequential effects on inflation, workforce dynamics, supply chains, and investment behaviors.
In conclusion, the video enlightens viewers on the importance of understanding fiscal and monetary policies when analyzing market trends and making investment decisions. By decoding these policy mechanisms, individuals can navigate the complexities of the financial landscape more effectively, especially during times of policy changes and economic uncertainties.