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11 Jun 2018

- explain the roles of monetary and fiscal policy in causing and ending hyperinflation

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Keith Leannon
Keith LeannonLv2
12 Jun 2018

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Related questions

Hyperinflation: Although inflation is always and everywhere a monetary phenomenon, explain why the initial source of hyperinflation is typically related to the fiscal policy.

As you have learned in Unit 8 (this week), monetary and fiscal policy play important roles in economic stimulation and or stabilization. In this regard:

 

a. When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? 

b. When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy?

c. What specific fiscal policy tools would you use to stimulate aggregate demand and how?

d. What specific monetary policy tools would you use to stimulate aggregate demand and how?

e. What is your conclusion, should policymakers use the monetary and or fiscal policy to stimulate aggregate demand? Explain briefly.

For many years, the overall economic policy of the United States has been a balancing act between fiscal policy and monetary policy. Explain what is meant by the following:

(A). Fiscal policy

How is fiscal policy set?

Who sets fiscal policy?

How does this policy affect the economy?

(B) Monetary policy

How is monetary policy set?

Who sets monetary policy?

How does this policy affect inflation, the economy?

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