The article examines how US monetary and fiscal policies interact during different economic periods. By analyzing policy shocks and transmissions, the researchers found that during the Great Recession, fiscal policy was more active in stabilizing the economy, while monetary policy was more aggressive during the Volcker era. They also discovered a strong relationship between monetary and fiscal policies over time. Additionally, tax cuts were found to have a greater impact on expanding output compared to government spending increases, due to their ability to stimulate private sector growth. This suggests that carefully managed tax cuts can lead to sustained economic growth, especially during times of recession and low interest rates.