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This article discusses the delicate balance between fiscal and monetary policy. The president of the Federal Reserve Bank of Boston, Eric Rosengren, blames inefficient fiscal policy on the little-effect monetary policy is having on the economy. He argues that tight fiscal policy, or contractionary strategies, are making it more difficult for the Federal Reserve to lower the unemployment rate. However, it is important to understand that monetary or fiscal policy is not better than the other. Instead, it is likely to take a combination of strategies to combat problems in the economy.

This article discusses the efforts of Japan to combat deflation and improve economic growth using monetary policy through the Bank of Japan. The country is in a particularly peculiar position because Japan's public debt is twice the size of its economy, therefore rising interest rates could prove to become a potentially out-of-control situation. There is much debate over which policies the country should take to best correct its economic situation, while some are suggesting that the current policies being used may be successful without causing much inflation at all.

This article discusses the caution needed when implementing monetary policies. 

This article is very interesting as it discusses the potential harmful effects of using a monetary policy, that is to say the control of the amount of currency in the system to regulate the economy. I did my IA on the trade off so this article was very interesting for me as it relates to it all together.

The areticle is about the Reserve Bank of India stopped listening to lullabies of praise on its exemplary handling of monetary and exchange rate policies. The current policy keeps piling up useless reserves, offers wholly avoidable arbitrage opportunities to patriotic residents and even more patriotic non-residents, hikes interest rates, depresses growth and widens the fiscal deficit. People are raising dollar debt and not bothering to cover forward. They are confident that the rupee would either appreciate against the dollar or at least hold steady till repayment time.When dollars come into India, they have to be converted into rupees. This conversion bloats our forex reserves and injects rupees into the system. If all the rupees created as a result of dollar inflows were to be allowed to add to the money supply, that would reduce interest rates and also create the potential for inflation. So the RBI sterilises such rupee injections by selling government bonds and mopping up rupees from the system. The increased supply of government bonds brings down their price, hiking the yield. Thus, sterilisation pushes up interest rates.

The primary reason unemployment remains high is a lack of demand. An aggregate demand shortfall is exactly the kind of problem monetary policy can address. Thus, we need powerful and continuing monetary stimulus to move toward maximum employment and price stability. The following is adapted from a presentation by the president and CEO of the Federal Reserve Bank of San Francisco to The Forecasters Club in New York, New York, on February 21, 2013.

This article refers to aggregate demand in 2010 and it states that India's fiscal and monetary policies had saved India from slipping onto another recession. Firstly the article states that India relies heavily on domestic demand because it cannot heavily rely on export and therefore they needed the measures to increase aggregate demand. This increase in aggregate demand, even though it has not been mentioned, can be assumed to shift the demand curve to the right and therefore more real output is demanded at every price level.

This article discusses the common trade-off between unemployment and inflation. In Europe, the Central Bank is expected to lower interest rates, a monetary policy strategy, in order to aid with the current issue of low inflation and high unemployment. Decreasing interest rates has the general effect of increasing Aggregate Demand in an economy, and according to the relationship between these two aspects of macroeconomics this increase is likely to increase inflation while also reduce unemployment as real output increases.