Monetary policy

In speaking today of the presidency and the economy, we discussed how the president doesn't control the Federal Reserve, but their actions affect the economy. Today, stocks surged over the mere speculation that the Fed will cut interest rates. A link to the article is here.

We spoke of how presidents don't control monetary policy, but it does affect them politically. The surge in the stock market won't help Bush, but may help the incumbents party (Republicans).

Economic Policy and the White House

Here are some basic graphs on economic policy, and the special case of aging and Social Security.

Does the executive control where the money goes? No, Congress earmarks money for projects. Here is one example (h/t Charlie Johnson).