Monetary policy inferior than fiscal policy:
When making comparison between the monetary policy and fiscal policy, fiscal policy mostly has a greater impact on consumers than monetary policy because it can lead to increased level of employment as well as income.
By increasing the taxes, governments may pull money out of the economy and slow down the business activities.
Monetary policy superior to fiscal policy:
Fiscal policy is a policy which is enforced by the legislative branch of government. It deals with tax policy and the government spending. Whereas
Monetary policy is enforced by a government's central bank. It deals with changes in the money supply of any nation by adjusting different measures such as interest rates, reserve requirements and open market operations and no such measures are used in fiscal policy.
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