Issues in the Implementation of Fiscal, Income and Monetary Policy in order to Adjust Aggregate Demand
The goal of this paper is to discuss the joint analyses of fiscal, income and monetary policy in modifying aggregate spending. The paper is focused on the specific characteristics of aggregate demand depending on phases of economic cycle. Through this paper I also intend to emphasize that the recent crisis involved a shortfall of aggregate demand, falling incomes, budget deficit, monetary difficulties in which it is necessary the implementation of proper macroeconomic policies tools. In order to adjust aggregate demand in reaching the main goals of macroeconomic wealth which are price stability and economic growth, the fiscal, income and monetary policy need to be coordinated in adequate ratios. These measures imply good cost benefit analyses before applying the proper mix of policies
Volume (Year): X (2010)
Issue (Month): 2 (October)
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