Monetary vs. Fiscal Policy in National Economics Term Paper by Master Researcher

Monetary vs. Fiscal Policy in National Economics
This paper describes the difference between monetary and fiscal policy and theory in modern macroeconomics.
# 37868 | 1,150 words | 3 sources | MLA | 2002 | US
Published on Nov 12, 2003 in Political Science (Fiscal Policy (economy)) , Economics (General)

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This paper discusses the difference between monetary and fiscal policy and the advantages of fiscal policy. The paper looks at supply-side theory and the Phillips Curve and demonstrates how in terms of government spending, fiscal economic theory has proven itself a more versatile and superior counterpart to monetary theory.

Fiscal vs. Monetary Policy: What's The Difference?
Fiscal Policy: Advantages
Supply-Side Economics And Government Spending

From the Paper:

"Some scholars would ask: aren't monetary and fiscal policy just two sides of the same coin - the one side concerned with fluctuating values of currency, the other with the fluctuating values of goods? If only it were that simple, economics degrees would be as common as drivers' licenses. Fiscal policy, defined as the government's policy in regard to taxation and spending programs, defines the balance between these two areas that dictates the amount of money the government should withdraw from or feed into the economy. This feeding/withdrawing process, usually accomplished by government contract or social services spending, can counter economic peaks and slumps.
"Monetary policy, on the other hand, is handled by the Office of the Federal Reserve. The Fed determines interest rates and can contribute to fiscal policy initiatives by printing and releasing new bills into circulation. Its main effect, however, is on the stock market, which, while it is a good indicator of economic performance, cannot itself save an economic slump from worsening (Rogers, 265). Interest rates affect everyday consumers on some level, but fluctuation in these rates also impacts large investors and securities firms."

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Monetary vs. Fiscal Policy in National Economics (2003, November 12) Retrieved February 25, 2021, from

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"Monetary vs. Fiscal Policy in National Economics" 12 November 2003. Web. 25 February. 2021. <>