Fiscal and Monetary Policies

Among the main issues to be discussed at these sessions, one is the response of the economy to fiscal policy, the tax and expenditure policies of governments. The size of that response has been greatly overstated by advocates of the so-called "new economics." A second issue is the response to monetary policy, decisions or policies affecting the stock of money by central banks such as the Federal Reserve System. The size of the response to monetary policy has been frequently understated.