What is the inter-relationship between Monetary and Fiscal Policy?

How can fiscal policies come in when discussing market failures and income distribution?What is the inter-relationship between Monetary and Fiscal Policy?monetary policy is the manipulation of the rate of interest to attain certain macroeconomic objectives such as reduced rate of inflation. Fiscal policy is the use of taxes to bring about desired changes in the economy. Now you can co-relate these two while discussing "market failures" and the theory of income distribution in your essay. There is no direct relationship between these two but these can be more appropriately termed as measures and policies. fiscal policies to correct market failures come in the form of direct taxes levied on goods that have a negative externality and it will deter consumption of such goods. Or market failures like the exessive price held by monopolies can reduced by adopting certain fiscal policies. There are many books that discuss the role if fiscal policies in correcting market failures, or google it, you shall find out.What is the inter-relationship between Monetary and Fiscal Policy?The FED can buy government securities to finance the budget deficits.It can then but or sell in the market operation to adjust money supply and interest rate as a tool of monetary policy.