Monetary Policy Vs Fiscal Policy

Monetary policy is enacted by a governments central bank. Fiscal policy is often used in conjunction with monetary policy.

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In fact governments often prefer monetary policy for stabilising the economy.

. Expansionary or loose fiscal policy. It deals with. Fiscal policy is policy enacted by the legislative branch of government.

It deals with tax policy and government spending. This involves increasing AD. Fiscal policy aims to stabilise economic growth avoiding a boom and bust economic cycle.

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