How could monetary policy could conflict with fiscal policy in trying to resolve stagflation?

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1137451

2026-07-08 19:35

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They could conflict because of differing ideas on what will resolve stagflation. The fiscal policy may be spending money to meet the programs for the government. The monetary policy may be trying to decrease business involved in the fiscal policy. Actions meant to lower inflation may worsen the stagflation. It is sometimes difficult to reverse stagflation once it has begun.

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