In times of global crisis, such as financial crashes or pandemics, economic policy becomes one of the most powerful tools governments have to protect jobs, stabilise markets and prevent long-term damage to living standards. For students of economics, this topic sits right at the heart of macroeconomics, linking theory to real-world decision-making.

This in-depth guide explains how monetary policy and fiscal policy work during crises, why they matter, what their limits are and how they have been used in recent history. By the end, you will not only understand the policies, you will be able to analyse, evaluate and apply them in exams and essays.