Corpus ID: 220825511

Is Fiscal or Monetary Policy More Effective on Economic Growth? an Empirical Evidence in The Case of Ethiopia

  title={Is Fiscal or Monetary Policy More Effective on Economic Growth? an Empirical Evidence in The Case of Ethiopia},
  author={S. Beyene},
To achieve high and sustainable economic growth, full employment and stable prices, countries are using macroeconomic policies called; the fiscal and the monetary policies. Regarding the effectiveness of these theories, there are two different arguments; monetarists and Keynesian. The Keynesians argue that relative to the monetary policies, fiscal policies are more effective in influencing the economy especially during the liquidity trap. However, monetarists argue that money supply is the most… Expand

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