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Monetary and fiscal policies often operate at cross-purposes due to their differing objectives and mechanisms. Monetary policy, typically managed by central banks, focuses on controlling inflation and stabilizing the currency through interest rate adjustments and money supply regulation. In contrast, fiscal policy, determined by the government, aims to influence economic activity through spending and taxation decisions. When one policy is aimed at stimulating growth, the other may inadvertently be tightening conditions, leading to conflicting outcomes and reduced overall effectiveness.

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What are fiscal monetary and regulatory policies?

What are fiscal, monetary, and regulatory policies


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Fiscal and monetary policies under managed floating exchange rate regime?

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What has the author Alka Agarwal written?

Alka Agarwal has written: 'Inter-dependence of monetary & fiscal policies' -- subject(s): Fiscal policy, India, Monetary policy


What is the definition of demand side policy?

Policies designed to affect aggregate demand: fiscal policy and monetary policy.


What are the different tax policies?

Fiscal Policy Monetary Policy Easy Money Policy Tight Money Policy


What role does politics play in shaping the monetary and fiscal policies?

By making taxes higher and influencing interest rates.


Fiscal and monetary policies are used to shift the aggregate supply curve or the aggregate demand curve?

Aggregate demand curve.


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 is the main goal of both fiscal and monetary policy?

The main goal of both fiscal and monetary policy is to stabilize the economy.


Fiscal policies deal with?

Fiscal policies deal with finances usually budgets.


Who is the fiscal agent and advisor to government in monetary and fiscal matters of India?

RBI

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