Lesson: Monetary and Fiscal Policy

In this lesson, Nick Palazzolo, CPA, goes back in time to dissect the events of the 2008 financial crisis, setting the stage for a deep dive into the realms of monetary and fiscal policy. By comparing and contrasting this crisis with others, such as the pandemic and the 2001 tech bubble, Nick sheds light on the crucial roles of the Federal Reserve and the federal government in stabilizing the economy. Nick clarifies the distinction between monetary policy, managed by the Federal Reserve through interest rates and money supply, and fiscal policy, executed by the federal government through taxation and government spending. He also analogizes economic downturns to natural disasters, emphasizing the inevitability of recessions and the essential toolkit provided by monetary and fiscal policies to mitigate their impact. Nick's engaging exploration doesn't just focus on the theory; he also touches on the real-world implications of these policies and how they intertwine with politics and practical governance.