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Monetary and Fiscal Policy
Lessons
Mechanics of Monetary and Fiscal Policy
What is Money?
How is Money Created?
Official Measures of Money: M1 and M2
Demand and Supply of Money
Fisher Effect
What do Central Banks do?
Tools for Implementing Monetary Policy
Features of Effective Central Banks
The Monetary Policy Transmission Mechanism
Expansionary vs. Contractionary Monetary Policy
Limitations of Monetary Policy
Role of Fiscal Policy
Tools of Fiscal Policy
Fiscal Multiplier and Balanced Budget Multiplier
Ricardian Equivalence
Should We Worry About the Size of Fiscal Deficit?
Challenges in Implementing Fiscal Policy
Expansionary Vs. Contractionary Fiscal Policy
Combined Effects of Monetary and Fiscal Policy
