- Words: 1513
- Length: 4 Pages
- Topic: Economics
- Paper #: 10109582
Even the state needs resources, so it may decide to borrow money from the bank. JP Morgan could also emit bonds for the government, and a nice fee could be made out of that. However, should government spending be excessive, this could lead to inflation, which would seriously affect the bank's activity and profit margins.
The ways in which JP Morgan would feel the effects of fiscal policies are countless.