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lowering intrest rates (A+(
The main goal of both fiscal and monetary policy is to stabilize the economy.
Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.
lowering interest rates
Monetary policy is not neutral in the short-run but neutral in the long-run. Besides, fiscal policy is not neutral in both short-run and long-run.
lowering intrest rates (A+(
The main goal of both fiscal and monetary policy is to stabilize the economy.
Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.
lowering interest rates
Monetary policy is not neutral in the short-run but neutral in the long-run. Besides, fiscal policy is not neutral in both short-run and long-run.
Aggregate demand is actually influenced mostly by the nation's monetary policy and fiscal policy, not so much by inflation. Aggregate demand is actually influenced mostly by the nation's monetary policy and fiscal policy, not so much by inflation.
both monetary and fiscal policy
from my idea i think one think they both have in common is that they both run the economy for short term.
Both monetary and fiscal policy may be used to influence the performance of the economy in the short run. They share many of the same goals which are to: keep inflation low, maintain positive economic growth, and aim for full employment.
Opinions about if fiscal policy or monetary policy is better will vary depending on who you ask. One country may benefit greatly with fiscal policy, while another may not. It all has to do with their economic system.
Not being trained in this field I would venture the following from some experience: Firstly, both are about resources of the money kind. Fiscal policy could be confined to a financial year (or policy for a 12 month period) or policies applied to financial years. Whislt Financial policy could be generic for any policy involving money
monetory policy and fiscal policy both methods are used to control unemployment rate.