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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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 […]