A comprehensive overview of macroeconomic policy, specifically focusing on fiscal and monetary tools and their application to combat economic issues like inflation and recession, while also detailing a significant real-world economic challenge. Several documents explain fiscal policy as the government's use of taxation and spending to influence the economy, introducing concepts like automatic stabilizers and the multiplier effect. Other sources detail monetary policy, managed by central banks like the Federal Reserve, which uses tools such as setting the federal funds rate and the interest on reserve balances to manage the money supply and achieve a dual mandate of maximum employment and price stability. These policy explanations are framed by discussions on the 2021/2022 global inflation crisis, driven by factors like supply chain disruptions and the war in Ukraine, as well as a specific case study of Brazilian stagflation around 2015, highlighting the difficult trade-offs policymakers face when confronting simultaneous high inflation and high unemployment.