Economic Stimulus: Issues and Policies

Publication Date: April 2009

Publisher: Library of Congress. Congressional Research Service

Author(s): Marc Labonte; Thomas L. Hungerford; Jane G. Gravellle

Research Area: Economics

Keywords: Mortgage-backed securities; Fiscal policy; Recession

Type: Report

Coverage: United States

Abstract:

Recent policies have sought to contain damages spilling over from housing and financial markets to the broader economy, including monetary policy, which is the responsibility of the Federal Reserve, and fiscal policy, including a tax cut in February 2008 of $150 billion and two extensions of unemployment compensation in June and November of 2008. Over the past few months, the government has also intervened in specific financial markets, including financial assistance to troubled firms, including legislation granting authority to the Treasury Department to purchase $700 billion in assets.

This report will be updated as warranted by legislative and economic events.