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ry policy and the fiscal policy would like to be used together. Now, we analyze that the ways of the stabilization policies control the economic growth and the inflation.

-Economic growth and inflation 经济增长和通货膨胀
The economic growth is one of the objectives in the monetary policy, which is an increase to act as an economy to produce goods and services, compared from one period of time to another. While, the Gross Domestic Product (GDP) measures both the total income earned and the expenditure on the output of goods and services, so the level of real GDP is a good estimate of economic prosperity and the growth of real GDP is a good gauge of economic progress. Nevertheless, the monetary policy controls the economy to be stable, which need reduce the volatility of economic growth. Certainly, there are factors affecting the economic growth, for example the physical capital, human capital and natural resources.
On the other hand, the GDP deflator, consumer price index (CPI) or other index of the overall price level can measure the inflation rate. In economy, most prices tend to rise over time, this increase in the overall level of prices is called inflation. When the supply of monetary is higher than the demand of monetary, there is the money growth. And stable the price of money is the first objective in the monetary policy. In the long-term, Keynesian school said that stable the price is good to the economic growth.

When the higher volatility of inflation is, and the economy is growing fast, the fiscal policy is an important measure in meeting treat of the inflation.
which can trough that increase the taxation, which gives the government the ability to function and the ability to focus on the publics’ interests of expenditures and then reduce the government expending to decrease the aggregate demand to restrain the inflation.
A government could use the budget surplus to achieve two targets: to make the economic growth slowly and to stabilize the price can avoid the inflation too high. Keynesian school considers that remove the economic expending can reduce the aggregate demand for stabilizing price.
In the foreign exchange markets, inflation will lead to raise imported raw materials cost which are heavily dependent on exports of these commodities or alternatively by a fall in the value of the pound. There is a good example of cost push inflation was the decision by British Gas and other energy suppliers to increase substantially the prices for gas that it charges to domestic and consumers at different points during 2005 and 2006. 
Also, the money supply affects the inflation and open-market operations can have an even greater effect on the money supply. However, about reduce the volatility of inflation in the long run; the overall level of prices will adjust to the level for the demand for money equals the supply. Automatic stabilizers, including unemployment insurance and the tax system, these adjust the economy is slowing down. They operate the expenditure and keep the economy stable.
On the other hand, the central banks as the mainly monetary management in economy will operate the tools of monetary policy for increasing the economic resources, who want achieve the optimal resource allocation. Generally, the central banks will increase the money supply and decrease the level of interest rate for higher investment.
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