Investopedia, an online encyclopaedia of economics and finance, says this about stimulus, citing the work of the legendary economist John Maynard Keynes:
“Fiscal stimulus refers to policy measures undertaken by a government that typically reduce taxes or regulations—or increase government spending—in order to boost economic activity.”
“Monetary stimulus, on the other hand, refers to central bank actions, such as lowering interest rates or purchasing securities in the market, in order to make it easier or cheaper to borrow and invest.”
Finally, “Economic stimulus is action by the government to encourage private sector economic activity by engaging in targeted, expansionary monetary