13. IS/LM: Clinton-Greenspan mix and policy coordination
Interacting with graphs to learn more about policy coordination
In the United States, fiscal policy and monetary policy are determined by different branches of the Federal Government. Without some sort of coordination among them, it may be impossible to achieve one goal (such as deficit reduction) without losing ground in another goal (such as GDP growth). This was the problem facing President Clinton and Federal Reserve Chairman Alan Greenspan in 1991. Let's see how they solved it.
Objectives
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