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Business, 11.05.2020 05:57 shjblover812

Monetary Policy vs. Fiscal Policy: An Overview
Monetary policy and fiscal policy refer to the two most widely recognized tools used to influence a nation's economic activity. Monetary policy is primarily concerned with the management of interest rates and the total supply of money in circulation and is generally carried out by central banks, such as the U. S. Federal Reserve.1 Fiscal policy is a collective term for the taxing and spending actions of governments. In the United States, the national fiscal policy is determined by the executive and legislative branches of the government.

Both monetary and fiscal policy are tools a government can access to support and stimulate the economy.
Monetary policy addresses interest rates and the supply of money in circulation, and it is generally managed by a central bank.
Fiscal policy addresses taxation and government spending, and it is generally determined by legislation.
Monetary policy and fiscal policy together have great influence over a nation's economy, its businesses, and its consumers.

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Monetary Policy vs. Fiscal Policy: An Overview
Monetary policy and fiscal policy refer to the...
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