Without fiscal and monetary policy, the economic system might in a particular year be threatened with deflationary gap. Suppose private investment spending were too weak to provide adequate employment. What action would then be called for? The Federal Reserve would use expansionary monetary policy to try to stimulate private investment. To the degree that it's efforts were not fully successful, the fiscal authorities would still be faced by deflationary gap. This would be the signal for the national assembly and the president to introduce tax and public expenditure policies designed to help reachieve stable full employment (A 4% unemployment rate in an economy is regarded as a full employment) . Similar action would be called for in the case where private investment and consumption decisions were threatening the economy with an inflationary gap. With prices rising and employers vying for nonexistent workers, the federal government would initiate contractionary credit programs aimed to reduce the inflationary gap. But if the saving-investment or C+I+G intersections still threatened the economy with a sustained inflationary gap,it would be the duty of the National Assembly and the President to initiate higher tax rates and/or lower public-expenditure programs in the attempt to restore a high-employment without inflation. Fiscal policies dealing with taxes and public expenditure, in cooperation with stabilizing monetary policies, have for thier goal a high-employment and growing economy but one without price inflation. The fiscal and monetary authorities "lean against the prevailing economic winds," thereby helping provide a favourable economic environment within which the dynamic forces of private initiative can have the widest opportunity for achievement..A lesson for the Nigerian economy as well West African countries.

I don't think PMB and his executive understand

So,how would this reduce the hardship in Nigeria?

baralatie:

I don't think PMB and his executive understand

I think someone who has read my post like you,just have to tell them.

Thebachelor:
So,how would this reduce the hardship in Nigeria?

by yielding to what I just propose, it will boost aggregate demand and the econmy will jack back to life.