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The monetarist and fiscal controversy is still on. The recent history of the U.S. looks like a success story of the monetarists; but besides pure luck, it involved strong element of skill to utilize instrument of interest rate with, persistent, through wild unemployment, people started asking whether fiscal policy be able to survive anymore. But there are endeavourer with recession, and if recession becomes prolonged it will change the prorates just as the depression of 1930s did. Policy relating to counter cyclical contracts have less impact if tax payers are small in numbers or taxes are low. There are many observers who think that economic development of different economies may be divergent. We all know that capitalism is subject to cycles in different areas to be perfectly synchronous. Recession includes migration because of the increasing level of unemployment. One way to have the uniform monetary policy which unemployment is there is to have compensating nation and regional fiscal policies. Effectiveness of these policies with will be adjusted policy coordination has been emphasized at the international level. One must think on the deep reasons in the nature of coordination failure.
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Q. Why does government undertake an economic activity? If ever an activity has large externality or spill over and includes a large number of people, it may be found better th
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