The article analyzes how fiscal and monetary policies in Malawi affect the economy using a specific economic model. The researchers found that Malawi's monetary policy closely follows a rule where interest rates respond strongly to changes in inflation. Fiscal policy also reacts to changes in the economy, but not as strongly. The study shows that while fiscal and monetary policies have an impact on the economy, it is actually productivity shocks that play the biggest role in influencing business cycles in Malawi.