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Explain the difference between fiscal policy and monetary policy?

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Question added by Samer Khatib , Economics Moderator , Bayt.com
Date Posted: 2016/07/27
Zaheer uddin Raja
by Zaheer uddin Raja , Accounts Supervisor , Pakistan International Airlines

The aim of fiscal policy is to maintain a balance between government income (taxation + borrowing) and expenditure. By altering this balance, the level of aggregate demand is adjusted in order to achieve desired economy stimulation.

Monetary policy aims to control the supply, availabilty and cost of money. 

Muhammad Luqman Mustafa Ghulam Mustafa
by Muhammad Luqman Mustafa Ghulam Mustafa , Junior Clerk , Tehsil Headquarters Hospital,Kamalia

Fiscal policy always set by the Govt. and Monetary policy set by central bank of every country.

fiscal policy about expected revenues and expected expenditure during the year. and monetary policy how to control the volume of currency to manage the inflation ,growth ,rate of interest and value of currency

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