Ken Alvarez

April 15, 2015

Monetary policy is a term used to refer to the actions of central banks to achieve
macroeconomic policy objectives such as price stability, full employment, and stable
economic growth.
Fiscal policy is a broad term used to refer to the tax and spending policies of the federal
government. Fiscal policy decisions are determined by the Congress and the
Administration; the Federal Reserve plays no role in determining fiscal policy.

Top three fiscal policies of Aquino administration

1.The fight against corruption
2.Rule of Law, Human Rights, Good Governance
3.Inclusive Growth, Fight against Poverty
Fiscal policy relates to government spending and revenue collection. For
example, when demand is low in the economy, the government can step in
and increase its spending to stimulate demand. Or it can lower taxes to
increase disposable income for people as well as corporations.
Monetary policy relates to the supply of money, which is controlled via factors
such as interest rates and reserve requirements (CRR) for banks. For
example, to control high inflation, policy-makers (usually an independent
central bank) can raise interest rates thereby reducing money supply.

Tax Structures

1. Regressive taxes mean tax burdens decline as one's income rises,

2. Progressive taxes put more burden on those who earn higher incomes by
steadily increasing the rate for higher incomes.
3. Proportional taxes means the proportion stays the same regardless of income.
Income taxes are proportional because they tax the rich (which yields higher
revenues than taxing the poor, so they are more equitable) and because they
automatically stabilise the economy by taking more money away when wages spiral
upwards. This slows down inflation appreciably.

http://www.diffen.com/difference/Fiscal_Policy_vs_Monetary_Policy
https://answers.yahoo.com/question/index?qid=20080530200019AAFeTrS