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Thus, the bank used quantitative easing, which involved raising money supply and purchasing government bonds. The government of the UK could apply the fiscal policy in the moderation of the economic cycle. However, the policy has weaknesses since it is faced by political challenges that affect the tax rate changing to reduce inflationary pressures. A stable inflation rate in the economy tends to eliminate the vital sources of macroeconomic volatility (Dosi et al., 2015). In that, the likelihood that economic blows impacting inflation in the short term become more augmented through a consistent alteration in inflation prospects. In return, the stable nature of the prospects promotes the economic welfare by reducing inflation risk as seen in nominal bond yields. Monetary policy contributes significantly to the macroeconomic stability by insuring price stability. Fiscal policy sustains aggregate demand as well as private sector income to promote macroeconomic stability during the economic downturn. It also moderates economic activities during economic growth. Fiscal policy increase employment by raising aggregate demand, increasing output which leads to more job creation based on Keynesian theory (Paparas, Richter, and Paparas, 2015). Policy conflict may occur since both monetary and fiscal policy can result in contraction or expansion of GDP.