宋利芳《经济学专业英语教程（第三版·上）》Unit 13.pptVIP

Unit 13Text: Fiscal and Monetary Policy（财政政策与货币政策） 1. Key words 2. Stabilization policy 3. Fiscal policy 4. Monetary policy 5. Translate the following into Chinese 6. Questions 1. Key words 2. Stabilization policy 2.1 Definition of stabilization policy 2.2 Expansionary and contractionary policy 2.1 Definition of stabilization policy Policies that are used to affect planned aggregate expenditure, with the objective of eliminating output gaps, are called stabilization policies. The two major tools of stabilization policy are fiscal policy and monetary policy. 2.2 Expansionary and contractionary policy Policy actions intended to increase planned spending and output are called expansionary policies; expansionary policy actions are normally taken when the economy is in recession. Contractionary policies are policy actions intended to reduce planned spending and output. 3. Fiscal policy 3.1 Definition of fiscal policy 3.2 Composition of fiscal policy 3.3 Fiscal policy as a stabilization tool: Three qualifications 3.4 Reasons for fiscal policy as a stabilizing force 3.1 Definition of fiscal policy Fiscal policy refers to decisions about the government’s budget—how much the government spends and how much tax revenue it collects. 3.2 Composition of fiscal policy 3.2.1 Government purchases and planned spending 3.2.2 Taxes, transfers, and aggregate spending 3.2.1 Government purchases and planned spending Government purchases of goods and services, being a component of planned aggregate expenditure, directly affect total spending. If output gaps are caused by too much or too little total spending, then the government can help to guide the economy toward full employment by changing its own level of spending. 3.2.2 Taxes, transfers, and aggregate spending Transfer payments are payments made by the government to the public, for which no current goods or services are received. Examples of transfer payments are unemployment insurance benefits, Social Security benefits, and inc