Monetary policy is based on two tools. ... The third and the best solution how to increase a living standard of Slovaks is to use a fiscal policy. Fiscal policy is done by government and it is based on two factors. ... Fiscal policy is one of the most using policies in the democratic countries in the world. The basis of fiscal policy was given by J. ...
Otherwise these policies destabilising capital flows would inevitably undermine the exchange rate. ... The result was large devaluations of the exchange rates of these countries, especially against the US dollar; large interest rate increased to support the exchange rates at their new lower levels (to prevent wholesale over reaction and collapse in foreign exchange markets and to help contain the strong inflationary forces thus set in motion); and extra restrictions in fiscal policy designed to raise national saving, contain domestic spending and reassure foreign investors and international in...
