Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

WHETHER MONETARY POLICY IS MORE EFFECTIVE THAN FISCAL POLICY?

April 26, 2017effective fiscal monetary policy

0

Posted

WHETHER MONETARY POLICY IS MORE EFFECTIVE THAN FISCAL POLICY?

1 Answer

0

Posted

Oct 10,2007: As said, fiscal policy is formulated by the Central Government. Since the Central Government has huge mechanism to implement its fiscal policy, it takes longer time to affect the economy. On the other hand, monetary policy can be implemented immediately with a change in money supply controlled by the Central Bank. So, monetary policy has immediate affect while it takes longer time to implement fiscal policy.