The term “monetary policy” refers to actions taken by the central bank with the intention of affecting the amount of credit and money in an economy. Fiscal policy, on the other hand, refers to the choices made by the government on taxation and spending. Fiscal and monetary policies are both employed to control economic activity over time. They can be used to either regulate growth and activity when an economy starts to overheat or to boost growth when it starts to slow. Dive into the post to know more about this.
Credits: Abhay Mishra and Veenit Sureka