In modern economy monetary and fiscal policies are the key elements of government regulation. Expansive monetary and fiscal policies often lead to budget deficit and national debt increase. The main goal of this paper is to reveal how monetary and fiscal tools can stimulate the economic growth and prevent negative effects such as inflation.
FISCAL AND MONETARY INSTRUMENTS OF ECONOMIC GROWTH AND INFLATION CONTAINMENT
When real GDP is below the nominal, it means the economy is facing the money devaluation process, or inflation. The Federal Reserve System anticipations of the main macroeconomic indicators have revealed the relatively stable growth of the economy. The U.S. economy average inflation rate is ...