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The Effectiveness of Monetary Policy and Fiscal Policy in ...
The Effectiveness of Monetary Policy and Fiscal Policy in Bangladesh Labonnya Sadia Chowdhury University of Liberal Arts, Bangladesh Munshi Naser Ibne Afzal Shahjalal University of Science and Technology, Bangladesh Keynesian and the monetarist theorists have been debating for a l ong time on the Effectiveness of fisca l and Monetary Policy . The outcomes of several empirical researches are open to further studies and those outcomes suggest that none of t he policies can be thought of as superior to the other. The relative Effectiveness of Fiscal and Monetary policies in any economy depends on the prevailing economic and political conditions at any point in time.
to analyze and observe cases in which fiscal policy performs better, and those in which monetary policy works (Rakic B. et al, 2013, p. 107) (Jawaid, S. T. et al, 2010). Keynesian theorists focus on the liquidity trap as extreme special case, in which fiscal policy works.
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