For those who are not conversant with these terms, fiscal policy is the policy of the federal government with respect to taxation and government expenditure. Monetary policy on the other and refers to government policy with respect to interest rates and money supply. They are collectively known as stabilization policy. In Nigeria, the federal ministry of finance in conjunction with the president oversee the fiscal policy, while the central bank of Nigeria oversees the monetary policy decisions. So one might ask, what dichotomy is this article about? it will be highlighted in this article. We start with the fiscal angle. The federal government spending has increased progressively over the past five years. And in most cases, it operated a deficit. this will be referred to later. This spending by the federal government and by extension, the States have contributed in no small measure to the excess liquidity experienced in recent times. This has also led to the depreciation of the local currency from between 115 to 120 naira tot he dollar in 2008 to between 155 to 162 naira today. Read more using this link http://pocketeconomist..com/2013/11/the-fiscal-and-monetary-policy.html