Fiscal policy and Monetary policy - definition and difference

What is the difference between fiscal policy and monetary policy of a country ? Do both of them depend on the government decisions ?
30 May 2020 at 05:27 PM
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StanfordStanford
To get the required effect on economy, both fiscal policy and monetary policy may be applied in coordination with each other.

Fiscal policy - is the use of government spending and tax policies, to influence a country's economy. It relies mostly on taxation, government spending and borrowing.

Monetary policy - is made by a central bank or related agency. It is based on the control of interest rate and money supply. Monetary policy is referred to as being either expansionary or contractionary.
31 May 2020 at 02:27 PM
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BenBen
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