Have the President and Congress changed monetary and fiscal policy since the economic crisis?

Asked on by jleann

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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Yes.  The government as a whole has done many things to try to fix the economy since the economic crisis.

In fiscal policy, the major steps were the TARP program passed by Congress in October of 2008 (under President Bush) and the stimulus package passed by Congress early in President Obama's term.  These programs used government tax and spending policies as a way to try to help the economy regain its strength.

Congress and the President have much less control over monetary policy.  Here, the main actor is the Federal Reserve.  It has kept interest rates very low and has done things like "quantitative easing" to increase the money supply.

All of these things (and more) have been done since the economic crisis began in an attempt to help the economy recover.  They represent changes from previous fiscal and monetary policies.

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