Page 1 Monetary Policy There are two main focuses of the government’s macroeconomic policy, which are monetary and fiscal policy. We’re going to go more in depth of what monetary policy is and how it works. The United States monetary policy affects all kinds of economic and financial decisions that people make like taking out a loan to buy a house, starting your own business, or putting savings in a bank, bonds, or even …showed first 75 words of 2579 total…

…showed last 75 words of 2579 total…may have to start raising taxes and then that hurts the individual even more, because the banks already raised their interest rates. Conclusion Monetary policy is the policy directed toward the control of the money supply. With the FOMC meeting eight times a year to make sure that the U.S. money supply is completing their goals of economic growth and stabilizing prices, the economy will stay away from recessions and an increase in unemployment.