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The Poetry of Macroeconomics

Should output lag below potential’s Y,
Recessionary gap has hold of us.
Concerns about inflation now draw nigh--
Inflationary gap will shake our trust.
The Fed does monetary policy
Manipulates the interest rates for banks
All eyes are on the flow of currency
Afraid of issues if the system tanks.
Recessionary fixers needed be?
Expansionary fiscal policy!
Want to fix inflation easily?
Contractionary fiscal policy.
Stagflation is more complicated, though.
Fix it with fiscal policy? Heck no!




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