Monetary Policy v Fiscal Policy — What Do They Even Mean?

Other day I am scanning a blog post from what was once my favorite blog. The author uses the words “monetary policy” and “fiscal policy” in a manner that reveals he has no earthly idea what they mean, but they sit nicely in the sentence and give off the erroneous notion that he is an erudite and educated observer of the condition of the world and our economy.

So, your Big Red Car will tell you what they actually mean.

Monetary policy and fiscal policy are not interchangeable. They mean different things.

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