Monetary stimulus involves the manipulation of the available money supply within the economy.This can happen essentially in following ways
1) Alter the reserve Ratio: Reserve ratio is the percentage of assets that commercial banks have to keep on deposit with a Central Bank (Fed in US, RBI in India). Lower the Reserve ratio, more money the institutions can flow out in market
2) Lowering Discount Rates: These are the rates at which financial institutions loan money from Central Banks (Fed in US). Lowering discount rates will encourage borrowing and more flow of money in market
Fiscal Stimulus on the other hand means "Increased Government Spending" in Infrastructure etc (thereby creating more jobs ) and "Higher Tax Cuts" (thereby increasing the purchasing power of people
Monetary policy is one that containes money. this is the release and subsctraction of amount of money in economy by variuos tools (like loans to banks). Fiscal policy is government policy of taxation and subsidising (and goverment consumption). in lamens terms it is the taxing and wellfare of the nation.
Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure. Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.
A 'Stimulus' is a prop mostly used in plays or theatres that you build up a story on. For Example, you could use a torch if you are doing a scene of a play when you have to search for something or someone in the dark. Then you build up more ideas on it.stimulus (physiology), something external that affects a sensory receptor and influences an activitystimulus (psychology), a concept in behaviorismFor government spending as stimulus: see fiscal policyfor an increase in money designed to speed growth: see monetary policyfor general informaton about economic stimulus: see stimulus
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