Question

Who carries out monetary policy in the US & how does it work? And Which policy is more effective... fiscal or monetary?

Answer 1

The US central bank which is Federal Reserve conduct the monetary policy in the US. It carries out the monetary policy through three major policy tools such as open market operations, reserve requirements and discount rate.

Both fiscal and monetary policies has their own importance and it is very difficult to say which is more effective. But in general, fiscal policy has more direct and immediate effect than the monetary policy because fiscal policy directly impact aggregate demand.

the above is answer..