GIGAMIND

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115 CFA
File:
115.030.50.09 Economics - Reading 16 - 9. Interrelationships between Fiscal and Monetary Policy

9. Interrelationships between Fiscal and Monetary Policy

t. explain the interaction of monetary and fiscal policy.

What is the interaction between monetary and fiscal policy?
- Although monetary and fiscal policy both alter aggregate demand, they work in different channels.
- Monetary policy and fiscal policy are not interchangeable. They are each applicable in different situations, take different amounts of time to make an impact.


Source:
  • CFA