Fiscal Policy is the means by which government adjusts itsspending and tax rates to monitor and influence a nation's economy.It is the sister strategy to monetary policy and that is defined asa policy through which a central bank influences a nation's moneysupply.

In my opinion I prefer a monetary policy because of itsstability and fiscal relies too much on government debt. Fiscalpolicy decision making can also be influenced more on politics thanthe need of the economy.

Governments use each policy when the economy is too hot andinflation is rising:

fiscal: Governments can influence productivity levels byincreasing or decreasing tax levels and public spending and usuallycurbs inflation. It also increases employment, can maintains a goodvalue of money. Basically the government increases taxes to suckmoney out of the economy.

monetary: This is the process by which the authority on currencyof a country such as a central bank controls either the cost ofvery short-term borrowing or money supply. They often targetinflation of interest rate to create price stability and maintaintrust in its currency.

Each policy used in a recession the government can increasegovernment spending and cut taxes (or both). This can bring morejobs and the workers have more disposable income to put back intothe economy.

Can I get a  reponce to this guy. Please tryto wrte your agreement.

Your discussion post must be substantive. As a guidelineyour response to each question should be at least one paragraph.Your responses to fellow classmates must be substantive as well.Stating, “I agree” or “Good work” is cheerleading