One prominent debate over macroeconomic policy centers on the question of whether monetary and fiscal policy should be used to try to stabilize the economy.

Macroeconomic Policy

Strategies implemented by governments to influence the economy's overall performance by adjusting economic factors like interest rates, taxation, and public spending.

Monetary Policy

The setting of the money supply by policymakers in the central bank.

Fiscal Policy

The setting of the level of government spending and taxation by government policymakers