Macroeconomists are often concerned about the use the fiscal policy to stimulate aggregate demand. Imagine that you are invited to the UK Monetary Policy Committee to argue on the effectiveness of fiscal policy. How would you convince them to use fiscal policy? Which argument(s) would you present and why?

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Macroeconomists are often concerned about the use the fiscal policy to stimulate aggregate demand. Imagine that you are invited to the UK Monetary Policy Committee to argue on the effectiveness of fiscal policy. How would you convince them to use fiscal policy? Which argument(s) would you present and why?

 

1. Do NOT write the essay as a speech or a presentation. Do not pretend you are actually sitting in the MPC and talking to people. Just write it as a completely normal essay.
2.This question is asking you to compare fiscal and monetary policy. How they work, and what are the advantages and disadvantages of both compared to each other. You do not have to argue that fiscal policy is more effective, but you can, if you want to. The judgment is up to you, as long as you back it up with solid arguments

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