Fiscal and Monetary policy

1. Fiscal and Monetary Policy 2 hours

Executed by Master of Arts, senior lecturer,
KazGUU
A.T. Yessengeldinova

2. Fiscal and Monetary Policy

OBJECTIVES:
◦ Identify professional terminology enabling
Ss to widely apply it;
◦ Develop critical thinking skills;
◦ Enhance Ss ability for speaking, reading,
listening, writing;
Fiscal and Monetary Policy

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Warming-up
Brainstorming on:
Vocabulary
Pronunciation

4.

VOCABULARY on “Fiscal and Monetary
policy”
Fiscal policy
Monetary policy
Government expenditure
Tax, Taxation
Public goods and services
Budget deficit
National debt
Budget surplus
Balanced budget
Expansionary fiscal policy
Contractionary fiscal policy
Federal reserve bank
Reserve requirement
Discount rate
Persistent inflation
Persistent deflation
MEMORIZE THESE WORDS AND
EXPRESSIONS

5.

Pronunciation and text
comprehension
Government economic policies designed to influence
macroeconomic performance are of two types: FISCAL
POLICY and MONETARY POLICY.
Goals of both types of government policies: 1) to promote
price level stability; 2) full employment; 3) achievement of the
natural level of real GDP.
FISCAL POLICY
involves the use of
government
expenditures and taxation.
MONETARY POLICY is concerned with control of money
supply and credit market conditions.
Reference: Н.М.Дюканова “Английский язык для экономистов”, p.260

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8. Fiscal Policy

Fiscal policy is carried out by the legislative and/ or the
executive branches of government. The two main instruments
are government expenditures and taxes.
Budget deficits and surpluses:
When government expenditures exceed government taxes
revenues in a given air, the government is running a budget
deficit for that year.
When government expenditures are less than tax revenues in a
given
year, the government is running a budget surplus for that year.
When government expenditures are exactly equal to tax
revenues in a
given air, the government is running a balanced budget for
that year.

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11. Monetary Policy

Monetary policy is conducted by a nation`s central bank. In
the US it is carried out by the Federal Reserve Bank (“Fed”).
The Fed has 3 main instruments to conduct monetary policy:
open market operations, changed in reserve requirements,
and changes in the discount rates.
The Fed is engaging in expansionary monetary policy when it
uses any of instruments of monetary policy in such a way as
to cause an increase in the supply of money.
The Fed is said to engage in contractionary monetary policy
when it uses it instruments to effect a reduction in the
supply of money.
Monetary Policy

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THANK YOU!