MICROECONOMICS STABILITY AND POLICY INTERVENTION: A CRITICAL REVIEW OF FISCAL AND MONETARY POLICY APPROACHES TO INFLATION AND ECONOMIC GROWTH

The study explores the role of fiscal and monetary policies in achieving economic stability, particularly in managing inflation and fostering growth. It uses a mixed-methods approach, combining quantitative analysis with qualitative case studies. The research reveals that fiscal policies can stimulate growth but can exacerbate inflation if not calibrated. Monetary policies, on the other hand, can curb inflation but may have limited success in stimulating growth. The study emphasizes the importance of adaptive policy frameworks for sustainable economic growth. The recommends that policymakers should ensure better synchronization between fiscal and monetary measures to amplify their stabilizing effects on inflation and growth among other recommendations.