In this article we will discuss about Monetarists and Keynesians view on monetary and fiscal policy. The Monetarist View on Monetary and Fiscal Policy: The monetarists hold that changes in the money supply have a direct influence on aggregate expenditure and thus on income. Let us analyse an expansionary monetary policy followed by monetarists. To […]
Views on Monetary and Fiscal Policy (With Diagram)
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Fiscal Policy: Meaning and Instruments
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In this article we will discuss about the meaning and instruments of fiscal policy. Meaning of Fiscal Policy: Fiscal policy is a powerful instrument of stabilisation. “By fiscal policy we refer to government actions affecting its receipts and expenditures which we ordinarily take as measured by the government’s net receipts, its surplus or deficit.” The […]
Effectiveness of Monetary and Fiscal Policy
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In this article we will discuss about:- 1. Effectiveness of Monetary Policy 2. Effectiveness of Fiscal Policy 3. The Synthesist View: Three Range Analysis 4. Monetary-Fiscal Mix. Effectiveness of Monetary Policy: The government influences investment, employment, output and income through monetary policy. This is done by increasing or decreasing the money supply by the monetary […]
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