whats the difference between fiscal and monetary policy? (2 Viewers)

[nick1048]

please explain ???

 

[Jago]

Fiscal policy
the way a government attempts to manage the economy through taxation, spending, and borrowing

monetary policy
a government’s or central bank’s policy for control of the amount of currency available and the rate at which people can borrow money

 

[nick1048]

much appreciated sir

 

[Sarah168]

To be more exact and use economic terms (including the mention of the budget whiich isnt exactly an economic term but IS important)

Monetary policy refers to actions by the Reserve Bank of Australia to influence the supply and cost of credit in the economy. The main tool of monetary policy is the RBA’s use of market operations (buying and selling of Commonwealth securities or CGS) to influence the cash rate.

Fiscal policy is a macroeconomic policy and refers to the use of the government’s annual budget to affect the level of economic activity and the achievement of objectives such as internal and external balance and economic growth.

 

[Jago]

heh i just plucked them out of the inbuilt dictionary from MS word 2003

 

[nick1048]

monitary = economic... in terms of the budget website...

 

[Sarah168]

how does monetary = economic?

 

[Zarathustra]

In informal conversations monetary, fiscal etc. are used as synonyms for money. Like capital - it took me ages to understand that capital isn't money because I'd heard it so much.
As a side note - I read somewhere that the more offensive a swear word is the more synonyms it has (because people are afraid to say the actual word), that must mean the money is right up there...