Monetary policy?
In the U.S. the central bank (i.e., the Fed) does not print money; the U.S. Treasury Department does that. The Fed directly sets the discount rate, the rate of interest that it charges banks to borrow reserves from the Fed. The Fed also sets a target rate for the federal funds rate, the rate of interest that banks charge for borrowing reserves from one another. The Fed then uses open market operations, buying and selling Teasury securities, in order to influence the federal funds rate that actually prevails.
Do central banks give the rich too much power?
I suppose it depends on the central bank.The wealthy individuals in the Fed have been bankers for decades so it’s not that surprising they’ve acquired a bit of wealth. But the Fed has a non-partisan mandate given to them by Congress to keep inflation and unemployment in check. That’s really pretty much their job. I know people like to think that it’s some evil cabal determined to rule the world, but it’s really just a bunch of nerdy economists and bankers arguing about interest rates.Other, less autonomous, central banks may be inclined to benefit certain groups within that country. In most developed nations this is not the case.Anyway, the rich are just inherently powerful without central banks. With a ton of money comes a ton of power (or the ability to acquire power).
American foreign policy?
American neutrality was sparked for a number of reasons: 1. America was geographically separated from Europe and the rest of the world by two large oceans, and Americans wanted to stay out of European struggles which they believed they had no business in; and from which they could gain no advantage. 2. America was a developing nation and did not want to invest the large sums of money necessary to maintain large standing armies and navies. Thus, for most of American history, America had virtually no military force with which to become involved. Under these circumstances, neutrality makes perfect sense. 3. The American War of Independence was fought partially over the idea of the British housing a large standing army on American shores, and making the Americans pay for it. The Americans were very apprehensive of the expense. furthermore, large militaries were viewed by Americans as a means of imposing tyranny, and the Americans didn't want them. So, to sum up, isolation grew from geographic isolation, expense, and fear of tyranny. Why did it change? 1. Commerce. In the 20th century, America was far more dependent on foreign trade than in the 19th. This meant that other nation's problems would have dramatic ramifications on domestic markets. 2. Technology. By the start of WW I, military technology (German U-Boats) could have more impact on American interests. Later developments like Aircraft (think of Pearl Harbor), and still later, ICBM's made the idea of safety behind ocean walls an illusion. 3. Philosophy. In the 20th century, starting with Wilson, the US began to develop a political mentality that intervention in the world for the advancement of democracy was America's destiny. This was reinforced by the atrocities of WW II. Presidents Roosevelt and Truman were convinced that American engagement in the world was indespensible for maintaining world peace. The growth of the Soviet Union after the war only increased that committment, as there was no other nation strong enough to provide leadership against the threats of international communism. Hope this answer helps. Cheers.
What is fiscal policy?
Monetary policy is enacted by a country’s central bank. It’s apolitical.Fiscal policy is enacted by the government. The objective of fiscal policy is to either expand or contract AD (aggregate demand) through changes in tax rates and/or government spending. Government spending is one of the four determinants of AD, the other three being consumption, investment, and net exports. That’s why fiscal policies (and monetary policies) are examples of demand-side policies (Keynesian economics).Fiscal policy does not result in changes in the money supply; that, along with interest rates, is the central bank’s responsibility. Fiscal policy is primarily used to combat the effects of inflation and deflation.Expansionary fiscal policy is when the government decreases taxes and/or increases spending. This shifts the AD curve rightwards, closing a deflationary gap:Contractionary fiscal policy is when the government increases taxes and/or decreases spending. This shifts the AD curve leftwards, closing an inflationary gap:For a more detailed explanation of the benefits and drawbacks of fiscal policy, see my answers toShruthi Sailesh's answer to What would be the outcome of using expansionary policies to combat a recession?andShruthi Sailesh's answer to Why does crowding out occur? Can't the government just print new money?Tldr: Fiscal policies change the level of aggregate demand in a nation’s economy.
Why isn't there one single world wide currency?
Because there are different countries with different economic systems (capitalism, socialism, communism or any combination of these three), with different political systems (democracy, autocracy, authoritarianism, theocracy or any hybrid thereof) but most importantly, with different self-interests. Unless of course, two or more countries agree to unify their respective economies and one very good example is what happened to most of Western Europe through the European Union by introducing its own unified currency called 'euro'. If you look deeper among its members, you'll find the commonality that all have a democratic form of government with an economic system that is basically and fundamentally capitalistic.
Why do people protest against global institutions like IMF and World Bank?
HI! there are two reasons why people are protesting at anything. One is that they are negatively affected by it, the other is ignorance. Considering the first argument this institutions(i.e. IMF and WORLD BANK) are financial institutions and they are imposing charges and policy that affects the nations. For example, one country may not be able to export certain goods etc. because of the agreement with those institutions. The other factor is because some are ignorant and does not know the benefits of the said institutions. hope this helps. :)