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131 — Fiscal vs Monetary Policy
Manage episode 284214309 series 2870328
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Fiscal policy is what we call government spending and taxation. Monetary policy is what we call it when the central bank participates in financial markets to influence private-sector lending and borrowing.
So, where does our money come from? Does it come from the government (fiscal authority) or is it the central bank (monetary authority) that creates our dollars? How does basic income to fit in? Is it a form of fiscal policy or monetary policy? Can it be both? Is it neither?
For optional reading this week, we have an article by Brent Schrotenboer in USA Today from May of this year entitled "US is 'printing' money to help save the economy from the COVID-19 crisis, but some wonder how far it can go."
Previous related Boston Basic Income topics have included:
BBI #46 — The Treasury and the Fed
BBI #90 — Natural Rate of UBI
BBI #117 — Sovereign Money
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