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Difference between
fiscal and monetary policy
Presented by : Rahul dhamija
Meaning The tool used by the
government in which it
uses its tax revenue and
expenditure policies to
affect the economy is
known as Fiscal Policy.
The tool used by the
central bank to regulate
the money supply in the
economy is known as
Monetary Policy.
BASIS FOR COMPARISON BETWEEN
FISCAL POLICY AND MONETARY POLICY
Administered by Ministry of Finance Central Bank
Nature The fiscal policy changes
every year.
The change in monetary
policy depends on the
economic status of the
nation.
Related to Government Revenue &
Expenditure
Banks & Credit Control
Policy instruments Tax rates and government
spending
Interest rates and credit
ratios

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Diffenence between fiscal and monetary policy

  • 1. Difference between fiscal and monetary policy Presented by : Rahul dhamija
  • 2.
  • 3. Meaning The tool used by the government in which it uses its tax revenue and expenditure policies to affect the economy is known as Fiscal Policy. The tool used by the central bank to regulate the money supply in the economy is known as Monetary Policy. BASIS FOR COMPARISON BETWEEN FISCAL POLICY AND MONETARY POLICY Administered by Ministry of Finance Central Bank
  • 4. Nature The fiscal policy changes every year. The change in monetary policy depends on the economic status of the nation. Related to Government Revenue & Expenditure Banks & Credit Control Policy instruments Tax rates and government spending Interest rates and credit ratios