One of the more arcane arguments that has resurfaced in recent years is the distinction between monetary and fiscal policy. This is in reference to various unorthodox policy prescriptions that have recently arisen -- helicopter drops, QE, etc. Eric Lonergan has written a fairly concise breakdown of the distinction - "The distinction between monetary and fiscal policy." I have not had much time to think about his article -- too many charts to prepare -- but I do know whether my preferred definition is covered by his distinction.
Government Policy Matters
This is a debate that is solely for intellectual entertainment; the true answer is what matters is government policy. In the same way we should consolidate the central bank with the Treasury, we need to look at government policies as a coherent whole.…Bond Economics
What Is Monetary Policy?