As part of the President's team of economic advisors, you have been charged with the responsibilty of making a recommendation to the President on ways to cure the current inflation. Inflation which is currently at 6.4% https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category.htm#

You are considering the following options:

1. Do nothing,
2. Raise taxes (fiscal policy)
3. Raise interest rates (monetary policy).

Primary response;

Analysis: Fiscal policy is the responsibility of the administration and monetary policy is the responsibilty of the Federal Reserve. Discuss fully the option that you have chosen to recommend. Be sure to address the economic impact of that option, which is supported by theory and evidence. Post your recommendation to the forum for mmebers of your group to comment and provide feedback.

Explanation: Compare the option that you recommended with the option that you failed to recommend. Explain with both with theory and evidence why you decided against this option, mention limitations and unintended consequences if any.