Evaluating the Effectiveness of Fiscal and Monetary Policies  in Influencing Inflation in Advanced Economies since 2000

Author(s)	Bobur Kayumov
Country	Uzbekistan
Abstract	This paper examines the extent to which fiscal and monetary policies have been effective in influencing inflation in advanced economies since 2000. The paper evaluates the inflation trends alongside the government spending and central bank’s interest rates. The study employs comparative analysis from official sources such as the World Bank, the Federal Reserve and the European Central Bank. The findings suggest that monetary policy is generally effective under normal economic conditions, while fiscal policy is helpful during deep economic recessions, especially when monetary policy is constrained. However, both policies have their own limitations which should be taken into consideration. Overall, the paper concludes that while fiscal and monetary policies have been effective, their credibility is highly dependent on economic conditions and contextual factors.
Keywords	Inflation, Monetary Policy, Fiscal Policy, Interest Rates, Advanced Economies, Economic Recessions
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-31
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.64852

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