ECO 1000 Rasmussen College Brazils Monetary Policy Discussion

For this discussion, select a country other than the United States and find a recent, credible article from the Rasmussen library that discusses either the country’s fiscal or monetary policy. Address the following in your initial post.

• Identify which monetary policy tools and/or fiscal policy tools are used by the country.
• Describe whether expansionary or contractionary fiscal and/or monetary policy is being used by the country.
• Determine whether fiscal and/or monetary policy was used appropriately to stimulate the country’s economy and employment.
• Discuss the long-term effects associated with expansionary or contractionary monetary or fiscal policy.

In your reply post, discuss how a peer’s chosen country relates to the one you selected. Please be supportive and encouraging in your posts.

https://drive.google.com/file/d/1zOWZk_82FlbT3tDzo… 

Peer post:

The Chinese government has been pursuing fiscal policy to finance key construction projects by issuing government debt. Meanwhile, sound monetary policy has been implemented in coordination with the fiscal policy.

To compensate for the aggregate demand shortfall, the government has no alternative but to use expansionary fiscal and monetary policy.

The monetary policy was appropriately placed to stimulate the country’s economy and employment.

Monetary policy affects TFP, capital accumulation, and the productive capacity of the economy for a very long time.

References

Mo, Y., Liu, D., & Sun, W. (2021). Deconstructing the Effects of SARS on China’s Real Economy: What are the Lessons for Monetary Policy? Emerging Markets Finance & Trade, 57(6), 1727–1740. https://doi.org/10.1080/1540496X.2021.1908258