monetary police
The government does use monetary and fiscal policy to regulate the economy. They do this by controlling the amount of money in circulation in the economy. If they want to reduce the amount of money in circulation, they raise interest rates and sell treasury bonds. If they want to increase the amount of money in circulation, they will by the treasury bonds and reduce interest rates.
NAIC
tight money policy combats inflation (when to much money is out in circulation the Fed limits the amount of money that is in Circulation known as the tight money policy.)
Economic policy concerns the way the government collects and spends money and regulates the market. Income tax rates are an example of economic policy.
Controlling the amount of money in circulation
Monetary policy
The president regulates the fiscal policy of India.
The Federal Reserve
Fiscal policy
The government restricts the amount of money that banks can lend.
Monetary policy
The government restricts the amount of money that banks can lend. (APEX)