The Monetary and Fiscal Policies, although controlled by two different organizations, are the ways that our economy is kept under control. Fiscal Policy is defined as the use of government spending and revenue collection to influence the economy. Monetary policy however is the regulation of the money supply and interest rates by a central bank, such as the Federal Reserve Board in the U.S., in order to control inflation and stabilize currency. Although these two policies are meant to help stabilize the U.S. economy, both the fiscal and monetary policies, look like from past results, requires some change especially the fiscal policy.
In looking at the structure of Monetary and Fiscal policies, it must be understood how the two relate to each other within the government structure. …
