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    Diffrence Between Monetary and Fiscal Policy

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    suchitracool1
    Monetary policy aims to maintain price stability, employment, and growth by regulating money supply and credit availability, while fiscal policy seeks to influence aggregate demand and control inflation or recession by deliberately changing government revenue and spending. Both are economic policy tools used by different government departments, with monetary policy implemented by central banks and fiscal policy by treasuries or finance ministries, though both are formulated and executed under the same overall government.

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    Diffrence Between Monetary and Fiscal Policy

    Uploaded by

    suchitracool1
    2K views1 page
    Monetary policy aims to maintain price stability, employment, and growth by regulating money supply and credit availability, while fiscal policy seeks to influence aggregate demand and control inflation or recession by deliberately changing government revenue and spending. Both are economic policy tools used by different government departments, with monetary policy implemented by central banks and fiscal policy by treasuries or finance ministries, though both are formulated and executed under the same overall government.

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    Indian economic policy

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    Monetary policy aims to maintain price stability, employment, and growth by regulating money supply and credit availability, while fiscal policy seeks to influence aggregate demand and control inflation or recession by deliberately changing government revenue and spending. Both are economic policy tools used by different government departments, with monetary policy implemented by central banks and fiscal policy by treasuries or finance ministries, though both are formulated and executed under the same overall government.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views1 page

    Diffrence Between Monetary and Fiscal Policy

    Uploaded by

    suchitracool1
    Monetary policy aims to maintain price stability, employment, and growth by regulating money supply and credit availability, while fiscal policy seeks to influence aggregate demand and control inflation or recession by deliberately changing government revenue and spending. Both are economic policy tools used by different government departments, with monetary policy implemented by central banks and fiscal policy by treasuries or finance ministries, though both are formulated and executed under the same overall government.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    Difference between Monetary and Fiscal Policy

    Monetary Policy
    1. Objective to maintain
    price stability, full
    employment and economic
    growth
    2. Regulates money supply
    and cost and availability of
    credit. Also influences and
    borrowing rates of
    commercial banks
    Fiscal Policy
    1. Objective to change
    aggregate demand, to
    control inflation and to
    overcome recession
    2. Causes a deliberate change
    in govt. revenue and
    expenditure with a view to
    influencing the price level
    and the quantum of
    national output

    Both monetary and fiscal policies are instruments that are
    available to different arms of the govt. Though both are
    formulated and implemented by the same govt. they are done by
    different departments monetary policy through Central bank
    and fiscal policy through the treasury or the ministry of finance

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