Question

Compare and contrast fiscal and monetary policy. How are they alike and how do they differ?

Answer 1

Monetary and Fiscal policy both impact our economy, and have similar goals such as trying to keep inflation at a low rate, helping to achieve full employment and maintain economic growth.The difference between monetary and fiscal policy is that monetary policy is typically implemented by a central bank, while the fiscal policy decisions are set by the national government.

Answer 2

The Monetary policy is naturally applied in a bank central, while the fiscal policy verdicts are agreed by the general government. On the other hand, both the fiscal policy and monetary policy can be used to influence the economy’s performance in the short.