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Monetary Policy is also responsible in managing money suppky and interest rate
While on the other hand, Fiscal Policy is the use use of government spending
and tax policies part of influencing economic conditions, including demand for
goods and services, employment, inflation, and economic growth. The lower the
tax, the spending and investment is high, that leads to higher demand. That
demands leads firms to hire more employees that decrease the rate of
unemployment.
The difference between the both policy is that fiscal policy is not effective without
managing it through the central bank. While the Fiscal Policy is how you properly
managed the money that is circulating in the firm or country. Monetary Policy is
also concerned more in managing the monetary supply while the Fiscal Policy is
how the congress or other lected officials managed the spending and the tax.
Money Policy can be seen through money, checks, credit, cash. That deals more
on credit. Which is consist of bonds, loans, and mortgage. While Fiscal Policy
deals with interest rates and supply. The fiscal policy’s way of making a heealthy
both of which provide consumers and businesses with more money to spend.
The very idea os this is taht for the consumers to have more money that they
could spend. While on the other hand, monetary policy is using liquidity in
interest rates, bank reserve requirements, and the number of government bonds
that banks must hold. All these tools affect how much banks can lend. The
In conclusion, monetary policy should work hand in hand with the national
for their strategy in reducing tax od increasing it’s spending, as an effect, they will
Source:
https://www.thebalance.com/what-is-monetary-policy-objectives-types-and-tools-3305867
https://www.thebalance.com/what-is-fiscal-policy-types-objectives-and-tools-3305844
https://www.investopedia.com/terms/m/monetarypolicy.asp
https://www.investopedia.com/terms/f/fiscalpolicy.asp