Fiscal and monetary policies are the instruments government use to manage the economy. The main focus of economic policy is the over all well being of the citizenry. Economic policy worldwide is meant to gear the economy towards full employment of resources, stable prices, balanced growth, and a favourable external reserve as a back up to exchange rate stability. These overall objectives can be conflicting and it requires men and women with deep knowledge of the workings of the economy to manage the unintended outcome of policy. In Nigeria today, it will appear that monetary policy is concerned mainly with price and exchange rate stability with little concern for balanced growth and the attainment of full employment