Monetary Policy and Fiscal Policy

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Monetary policy and Fiscal policy
The characteristics of the current monetary and fiscal policy in our country are similar as the two have similar aims and objectives for the economy stabilization. They are both applied so as to:keep inflation in the low (inflation target of 2%), to maintain a positive economic growth for a continuous period of time (close to long run trend rate of 2.5%), and also to aim at the full employment.
The main aim of fiscal and monetary policy is for the reduction of the cyclical fluctuations in the economic cycle that our economy has experienced often. Frequently it is inflation aiming which is emphasized most for monetary policy.Fiscal Policy involves adapting government spending and taxation. It is concerned with the shift in the government’s budget situation. For instance, expansionary fiscal policy takes into consideration the tax cuts, also the higher government spending, and lastly the bigger budget deficit. Monetary policy contains manipulating the demand and supply of money, chiefly through the usage of interest rates. It can similarly include unconventional strategies such as open market operations and quantitative facilitation (Abubakar &Aisha Mohammed 100).
For the case of the monetary policy that majorly are concerned with the decisions that the government makes concerning the money supply and the interest rates. This is mainly affected through the use of Federal Reserves. In the instances that the government increases the money supply and decreases the interest rates, the apple product will be more demanded and hence increase in sales and vice versa (Summers &Lawrence 145).
Taking into consideration the case of Apple Inc. which is chiefly producing iPhone, its product are greatly affected by the changes in both the monetary and the fiscal policy that are implemented by the government. As we have seen, government uses the two measures in a bid to attempt to maintain economic stability. In relation to the fiscal policy which is mainly the spending and taxation. Any increase in the expenditure will end up making the Apples goods more demanded as people have a lot of money to spend, likewise decreasing the taxes will leave citizens with a lot of money to spend, and this surplus funds will be used to buy Apple products hence more sales and revenue for the firm ( Abubakar &Aisha Mohammed 67).
Work cited
Abubakar, Aisha Mohammed. “Inflation Targeting as a Monetary Policy Framework: A Critical Appraisal.” Imperial Journal of Interdisciplinary Research 2.6 (2016).
Summers, Lawrence H. “Secular Stagnation and Monetary Policy.” Federal Reserve Bank of St. Louis Review 98.2 (2016): 93-110.
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