Fiscal or Monetary Research Paper Example | Topics and Well Written Essays - 250 words

Fiscal or Monetary - Research Paper Example This is because the article was written at a time when the global economy had generally recovered from the economic crunch and so there was much active economic performance in terms of buying and selling. Because the global economy had generally recovered from the recession, a lot more employment avenues had been created and investments had started among several multinational companies. Consequently, Mathai (2011) notes that â€Å"workers then use their increased income to buy more goods and services, further bidding up prices and wages and pushing generalized inflation upward.† The above points discussed not withstanding; there is a very clear tendency that if the author had written his article at the time of recession from 2007 to 2009, his points and opinions would have changed a great deal. For instance at the time of the recession, even though monetary policies that were geared at adjusting the supply of money in the economy were relevant, these supplies were not needed to stabilize prices. Clearly there was no active demand and supply interfaces and so the need to channel resources at inflation would not have been the most prudent option. In relation to the recession of 2007 to 2009 therefore, the author’s choice of monetary policy would have been directed at economic growth, which would have been a perfect response to the consequences of the recession that was being