Ideally, governments would enact policies and reforms to improve an economy whenever possible; however, monetary authorities also influence economic activity and although coordinated fiscal and monetary policies are preferred, that may not happen.

Additionally, the impetus for change may be dampened since the fiscal and monetary authorities recognize the other's actions are likely to take some of the pressure off during challenging times.

Dear Rob Catlett Thank your for your answer. While going through the papers of ECB on macro prudential measures, I started to develop the sentiment that sometimes these measures instead of tackling the consequences that the financial crisis left behind, it wind up moral hazard of governments and banking sector , to rely more on the liquidity provided by the ECB rather than trying to improve the economic and financial outlook through fiscal policies.

Monitory policy is one of the weapons used by governments especially during crisis. The overall objective is to improve the situation.

Many (mainly academic) economists seem to be social masochists ("social", because the cures they propose do not, in general, concern them). A monetary break-down would help nobody.

Dear Nagalingam Nagendrakumar thank you for your answer

Anton Rainer I would agree because what we all do, in the vast majority of the papers hardly applies to the practical side of an economy.Sometimes, I ask my self if we really do know to estimate and predict??

Interesting research thesis. This is possible because during the recent financial and economic crises it was in the monetary policy that the first measures were taken as anti-crisis. In addition, anti-crisis monetary policy compared to interventionist fiscal and budgetary policies can be quickly applied because it is associated with relatively simpler procedures etc. On the other hand, in the situation of major crises, such as the global financial crisis of 2008 and the crisis that is currently beginning economic crisis caused by the development of the SARS-CoV-2 coronavirus causing Covid-19 disease are instruments of only one policy i.e. only monetary policy or only budgetary policy often prove insufficient to effectively limit the development of the crisis, recession, decline in demand, income, increase in unemployment etc. and then interventionist, pro-development, Keynsian programs and instruments are run, which are included in specific policies, including monetary, budgetary and fiscal policies, which are carried out simultaneously and sometimes also in a coordinated manner.

Greetings.

Dariusz Prokopowicz

We need to have a combination of policies, e.g. to include supply-side policies.