Question

Can you please research monetary and fiscal policy in Greece and Zimbabwe and just share with me a little about what you learned. What happened in those two countries? What were some of the causes? What were some of the effects? Think about these things as both an economist and as a citizen. How would you have reacted if you were in one of those countries? If you had political power, how could you have better handled these situations? Thank you!

Answer 1

Monetary and fiscal policy are considered as major macro economic policies which help the economy to strive towards economic development .

Monetary policy refers to the policy related to the central bank of the nation.Whereas fiscal policy is relegated to the treasury of the government.

Greece	Zimbabwe
Monetary policy Greece crisis is the result of monetary policy misalignment between European central bank and Greece. It has destabilising effect Money financing was the constant over shooting of monetary targets which resulted in high inflation rate.	Monetary policy Zimbabwe's economy witnessed significant changes based on the positive economic trajectory to an inflationary environment. Key focus area is to ensure exchange rate and price stability and smooth functioning of interbank foreign exchange market 3.It provides support to economic activity without endangering the important objective of reducing and stabilizing inflation in short to medium term.
Fiscal policy 1. Greece must avoid the adoption of a fiscal stimulus package 2. External debt is higher with fiscal expansion 3. It has leakages associated with increased payment to foreign creditors	Fiscal policy It has to maintain price and exchange rate stability as an expansionary fiscal policy It formulates budget policies Fostering collaboration with sectoral policies and development programmers.

If you were an economist or citizen in any of these countries the main attribution was to set right the crises with help of monetary and fiscal policy.Which would in turn help the formation of regional economic cooperation leading to the sustainable development and economic change.It would even promote investment activities so that the problems created by crises is set right.if political powers are vested then based on the situations would have implemented monetary and fiscal policy and bough economic change striving towards sustainable development.