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Which have immediate impact to the economy - the implementation of the fiscal policy or the monetary policy?
Wiki User
∙ 11y ago
well as fiscal policy means taxation and spending by government,it has since past been used often incorrectly. this process need two way interaction where people pay taxes regularly and where government is too honest and commited on its part of doing good.we all know that how much taxes are being paid and even if some good citizens pay them regularly they often make a fool out of there self as they still face problems related to basic civic ammenities(water,roads,etc.).
so fiscal policy has lots of problems to actually work right.politicians and even contractors first think about their own pockets and then whatever is left goes into the development of our India.
monetary policy is related to management of money supply and intrest rates.
it thus helps to control and regulate shortage and even inflation.
it can be seen that when ever government faces problems of inflation it tries to regulate rates of intrest and taxes to lower the prices and soon it helps to solve the problem to some extent.
so monetary policy is more effective and helps in useful managing of inflation and recession.
Wiki User
∙ 11y ago
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What is the main goal of both fiscal and monetary policy?
The main goal of both fiscal and monetary policy is to stabilize the economy.
What are the tools of monetary and fiscal policy in India?
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.
Governmental fiscal policy?
Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.
Fiscal policy and monetary policy?
fiscal is the governments budget in terms of spending and expenditure. so there can either be a budget deficit or a budget surplus. when there is a budget surplus, government use a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. in most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy
What are fiscal monetary and regulatory policies?
What are fiscal, monetary, and regulatory policies
What is the main goal of both fiscal and monetary policy?
The main goal of both fiscal and monetary policy is to stabilize the economy.
What are the tools of monetary and fiscal policy in India?
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.
Governmental fiscal policy?
Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.
What has the author Alpo Willman written?
Alpo Willman has written: 'The effects of monetary and fiscal policy in an economy with credit rationing' -- subject(s): Credit, Fiscal policy, Mathematical models, Monetary policy
Fiscal policy and monetary policy?
fiscal is the governments budget in terms of spending and expenditure. so there can either be a budget deficit or a budget surplus. when there is a budget surplus, government use a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. in most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy
What are fiscal monetary and regulatory policies?
What are fiscal, monetary, and regulatory policies
Controlling money to influence the economy is called?
Fiscal policy is the controlling of money to have an overall influence of the economy. Fiscal policy is based on ideas from economist John Maynard Keynes.
Can The government can use monetary and fiscal policy to regulate the economy?
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.
What is fiscal policy and how is it different to monetary policy?
Monetary policy refers to any measure that bring about changes in the rate of interest and the supply of money. Fiscal policy is the term used to describe how governments use taxation and government spending to manage the economy. <><> Fiscal policy includes increase or decrease of government expenditures and taxes while monetary policy includes expansion n contraction of money supply. <><> Fiscal policy is the government's budget in terms of spending and expenditure. There can either be a budget deficit or a budget surplus. When there is a budget surplus, the government uses a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. In most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy
Can the government use monetary and fiscal policy to regulate the economy?
There is a general belief among economists that governments can regulate the economy. The discrepancies are whether this regulations can affect the economy in the long run or not.
Monetary and fiscal policies of RBI during recession?
monetary and fiscal policy of rbi during recession
How are monetary and fiscal policy similar?
Both monetary and fiscal policy may be used to influence the performance of the economy in the short run. They share many of the same goals which are to: keep inflation low, maintain positive economic growth, and aim for full employment.
