Fiscal Policies are policies relating to direct government taxes and spending

Monetary Policies are simply interest rate increases or decreases by the RBA to stimulate spending of the consumer and businesses

In a depressed economy - the role of government is to spend more to stimulate growth (FISCAL) and the RBA reduce rates (MONETARY) to give people more money to spend

In a growing economy - the RBA increase rates (MONETARY) to reduce spending with government cutting back on spending (FISCAL)

What we have seen under this Labor government is reducing spending when it should be increasing.

Labor under Keating was the same

Maqqa wrote on Oct 22^nd, 2012 at 1:42pm:


It seems you are still pretending some Economic knowledge, when in reality you don't have any idea What is happening or Why it's happening!

That said, at least you've been looking at some text books or talking to you Liberal handlers, as it seems you now know (?) that both Revenue & Expenditure come under the Fiscal heading and it's not just Spending.

But, you still fail to understand that many of the old rules are "null & void" and more to the point, you have no idea Why that is the case.

Please don't worry though, because it seems neither Labor nor Liberal Pollies any more understanding of current & future Economic events, so you're not alone!

Maqqa wrote on Oct 22^nd, 2012 at 2:26pm:


Heard it before Maqqa and it's usually your confirmation that you have no idea what you are talking about!