Monetary policy is a tool in India that is used the Reserve Bank to regulate interest rates. Fiscal policy in India is a tool that regulates their economy.
The fiscal policy, which is, controlling the level of taxes and government spending, is left to the government. On the other hand, the monetary policy, that is, the tools fr controlling money supply in the economy, is controlled by the central bank.
Contractionary monetary policy is typically implemented using tools such as raising interest rates, increasing reserve requirements for banks, and selling government securities in open market operations to reduce money supply. On the fiscal side, contractionary fiscal policy involves reducing government spending or increasing taxes to decrease overall demand in the economy. Both approaches aim to curb inflation and stabilize economic growth by reducing excess liquidity and consumer spending.
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.
The Federal Reserve Board has substantial influence or control over monetary policy, interest rates, and banking regulations, but it does not have control over fiscal policy, which is determined by Congress and the federal government. Fiscal policy involves government spending and taxation decisions that are separate from the Fed's monetary policy tools.
Yes these are same................
techniques of monetary control of rbi
Fiscal policy
There are two tools of monetary policy.These are qualitative credit control and quantitative control. The1st control is measure of influence the allocation of credit.The 2nd is control in which supply of money is cotrolled quantitativly.
fiscal policy tolls impact the sweet smell of grren vagina in the morning under the tuscan sun.
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Monetary policy aims to manage the money supply and interest rates to achieve macroeconomic stability, primarily focusing on controlling inflation, maximizing employment, and stabilizing the currency. In contrast, fiscal policy involves government spending and taxation decisions to influence economic activity, aiming to stimulate growth during recessions and curb inflation during expansions. Together, they work to promote economic stability and growth, but through different mechanisms and tools.