Monetary Policy vs Fiscal Policy
Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
✏ Monetary policy involves influencing the supply and demand for money through interest rates and other monetary tools.
✏ The target of Monetary policy is to achieve low inflation (and usually promote economic growth)
✏ The main tool of monetary policy is changing interest rates. For example, if the Central Bank feel the economy is growing too quickly and inflation is increasing, then they will increase interest rates to reduce demand in the economy.
The Fiscal Policy implies the decisions taken by the government with respect to its revenue collection (through taxation), expenditure and other financial operations to accomplish certain national goals.
✏The government uses its expenditure and taxation programmes to generate the desirable effects or eliminate the undesirable effects on the production, employment and national income of the economy.
✏The Fiscal Policy aims at ensuring a long-run stability of the economy, could be achieved only by controlling the short-run economic fluctuations.
We at Finveda Wealth Management Pvt. Ltd. advise our clients to invest the best products to achieve their financial goals and we are the one of the best financial advisors in Hyderabad and one of the top mutual fund advisors in Hyderabad.
Mutual Fund investments are subject to market risk kindly read all documents carefully before investing.
Mutual Funds Sahi Hai per Sahi Advisor Jaroori hai. For best Financial Advise contact Finveda Wealth Management Pvt. Ltd., one of the top financial advisors in Hyderabad.
