@article{beyene2020fiscal,
  title = {Is Fiscal or Monetary Policy More Effective on Economic Growth? an Empirical Evidence in The Case of Ethiopia},
  author = {Sisay Demissew BEYENE and Balázs KOTOSZ},
  year = 2020,
  url = {https://ibimapublishing.com/articles/JARBT/2020/124855/},
  journal = {Journal of African Research in Business & Technology},
  volume = 2020,
  pages = 13,
  doi = 10.5171/2020.124855,
  abstract = {To achieve high and sustainable economic growth, full employment and stable prices, countries are using macroeconomic policies called; the fiscal and the monetary policies. Regarding the effectiveness of these theories, there are two different arguments; monetarists and Keynesian. The Keynesians argue that relative to the monetary policies, fiscal policies are more effective in influencing the economy especially during the liquidity trap. However, monetarists argue that money supply is the most significant driver of economic growth by influencing the households demand for goods, firms production and hence economic growth. Hence, monetarists believe that monetary policy is more effective than fiscal policy. Having the above contradicting ideas, using the Johansen cointegration approach, this study examined whether the fiscal or the monetary policy is more effective on the economic growth of Ethiopia for the period running from 1981 to 2008. The study shows that both fiscal and monetary policies have significantly increased the economic growth of Ethiopia. However, relative to the monetary policies, the fiscal policies are more effective. Finally, the study recommends that policy makers should focus on both policies to enhance the Ethiopian economy.},
  keywords = {Fiscal and Monetary Policies; Economic Growth; Johansen Cointegration; Ethiopia.},
  note = Article ID: 124855
}