How a Flexible Policy Works

FEDERAL fiscal policy, a formidable subject beloved by economists, is as obscure and unintelligible to almost everyone else as nuclear physics. Yet the Government's fiscal policy directly affects more people than almost anything else the Government does. By increasing or decreasing the supply of money, the Government indirectly determines such things as 1) how much a person can borrow, 2) whether he can get a mortgage on his house and how much it will cost him, and 3) whether he will get or keep a job. Last week a joint committee of Congress held the first full-scale...

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