Economía: Política Fiscal y Monetaria

Fiscal Policy

Government Spending

• Government expenditures on goods and services, infrastructure, and transfer payments (e.g., social security benefits)
• Can be used to:
  • Stimulate economic growth during recessions
  • Provide public goods and services
  • Redistribute income

Taxation

• Government revenue collection through taxes on income, consumption, and wealth
• Can be used to:
  • Redistribute income and reduce inequality
  • Influence consumer behavior (e.g., sin taxes on tobacco and alcohol)
  • Finance government expenditures

Monetary Policy

Inflation Targeting

• Central bank sets an inflation target (e.g., 2% annual inflation rate) and uses monetary policy to achieve it
• Benefits:
  • Anchors inflation expectations
  • Reduces uncertainty and volatility
  • Promotes economic stability

Monetary Policy Instruments

• Tools used by central banks to implement monetary policy:
  1. Open Market Operations: buying or selling government securities to increase or decrease money supply
  2. Reserve Requirements: setting minimum reserve requirements for commercial banks to influence lending
  3. Interest Rates: setting interest rates to influence borrowing and spending
  4. Forward Guidance: communicating future monetary policy intentions to influence market expectations

Fiscal Policy Objectives

• Goals of fiscal policy:
  1. Economic Growth: promoting economic expansion and job creation
  2. Price Stability: maintaining low and stable inflation
  3. Full Employment: achieving a high level of employment
  4. Redistribution of Income: reducing income inequality through progressive taxation and social welfare programs

Aprende sobre los conceptos fundamentales de la política fiscal y monetaria, incluyendo gasto gubernamental, impuestos, objetivos de la política fiscal y herramientas de la política monetaria.