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the use of fiscal policy

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I know that the use of fiscal policy can increase the possiblity of inflation. Does the use of fiscal policy also devalue the dollar like monetary policy?

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The expert determines whether the use of fiscal policy also devalues the dollar like monetary policy.

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Does the use of fiscal policy also devalue the dollar like monetary policy?

Yes, sometimes the use of fiscal policy devalue dollar in order to correct the trade and current account deficits and to keep a fragile economic recovery on track. It is a very common feature of international economics that nations with persistent balance of payments deficits are generally ...

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Umut Oltulu, MBA
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  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
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