Using fiscal policy t increase aggregate demand and consumption
Monetary policies on the other hand can be used to restart a slowly growing economy by influencing the quantity of money in circulation through credit and interest rates. The interest rates can be reduced to increase the lending by banks and financial institutions. This increases the amount of money in circulation and thus increasing the capacity of the households to have a desired effect on the forces of demand and supply. This helps in the reviving of the economy which reduce inflation and boost economic growth (Issing, 2005).
Furthermore, the government may influence the economy through open market operations. This is changing the reserve requirements by Banks to the Bank of England and providing discounts. Lower reserves and Discount rates will help inject money into the economy thus increasing the circulation of money in the economy.
Unconventional monetary policy can be applied in exceptional circumstances. For instance, from 2009 to 2017, the bank of England experience insufficiency of low-interest rates in restoring the normal levels of economic development.