Monetary vs Fiscal Policy

            Monetary vs Fiscal policy        (  Anuj Gupta)     Under the guidance of :  Prof. Ritika Gugnani QUESTION  :  When the economy is doing badly, should we do something to try to fix it,or should we leave it alone?  Monetary policy  is one of the ways that governments attempt to control the economy. The monetary authority of a country (usually a central bank) controls the supply of money, often targeting a certain interest rate for the purpose of promoting economic growth and stability. Expansionary  monetary policy is used to increase economic growth. The target growth rate is somewhere around 2%, because we want growth without causing  too much inflation. Contractionary  monetary policy is used to slow  economic growth. The goal is not to cause recession, but to temporarily slow growth to lower inflation. How do we increase economic growth? One way to increase growth is to  lower the interest rates  that people pay on loans  If