Monetary policy and fiscal policy are the two main tools used by governments to manage their economies. Monetary policy is controlled by central banks and involves managing interest rates and money supply, while fiscal policy is controlled by finance ministries and involves taxing and spending. The key difference is that monetary policy focuses on controlling inflation, while fiscal policy aims to influence economic growth through the budget.
Monetary policy and fiscal policy are the two main tools used by governments to manage their economies. Monetary policy is controlled by central banks and involves managing interest rates and money supply, while fiscal policy is controlled by finance ministries and involves taxing and spending. The key difference is that monetary policy focuses on controlling inflation, while fiscal policy aims to influence economic growth through the budget.
Monetary policy and fiscal policy are the two main tools used by governments to manage their economies. Monetary policy is controlled by central banks and involves managing interest rates and money supply, while fiscal policy is controlled by finance ministries and involves taxing and spending. The key difference is that monetary policy focuses on controlling inflation, while fiscal policy aims to influence economic growth through the budget.
Monetary policy and fiscal policy are the two main tools used by governments to manage their economies. Monetary policy is controlled by central banks and involves managing interest rates and money supply, while fiscal policy is controlled by finance ministries and involves taxing and spending. The key difference is that monetary policy focuses on controlling inflation, while fiscal policy aims to influence economic growth through the budget.
- Lê Thị Quỳnh Như (54) - Nguyễn Thị Thanh Thảo - Lê Thị Thảo Vy Differentiate between Monetary Policy and Fiscal Policy Monetary Policy Fiscal Policy It is a financial tool that is It is a financial tool that is used by the central banks in used by the central regulating the flow of money government in managing tax Definition and the interest rates in an revenues and policies related economy to expenditure for the benefit of the economy Central Bank of an economy Ministry of Finance of an Managed By economy It measures the interest rates It measures the capital Measures applicable for lending money expenditure and taxes of an in the economy economy Focus Area Stability of an economy Growth of an economy Impact on Exchange rates improve when It has no impact on the Exchange rates there is higher interest rates exchange rates Monetary policy targets Fiscal policy does not have Targets inflation in an economy any specific target Monetary policy has an Fiscal policy has an impact Impact impact on the borrowing in an on the budget deficit economy