|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|
What is the difference between monetary policy and fiscal policy?
I hear these two terms thrown around quite a bit in the news, but I'm not sure how they're different. Are they the same thing?
Monetary policy, is under the control of the Federal Reserve. They could choose to raise or lower interest rates, increase the money supply, etc.
Fiscal policy, is Congress and the Executive deciding wether to increase or decrease spending, and where to allocate this spending.
Both monetary and fiscal policies are tools used by public authorities to bring stability in the economy. As rightly said by rickylicea, monetary policy is under the control of the Fed Reserve in US or the apex monetary authority like Central Banks in any other country. On the other hand, fiscal policy comprises the tools used by the government agencies such as Congress.
Fiscal policy tools like taxes, public borrowings, public expenditure etc are developed and sanctioned by the legislative sections of the government and are implemented by the executive branch. The basic purpose is to influence the production and consumption of goods and services in the economy. For example, taxes reduce private consumption and public expenditure increases consumption by providing income to the people. If there is a price rise, government may impose more taxes and incur less expenditure.
Monetary policy tools are bank rate and other credit control tools, open market operation of sale and purchase of assets by the Fed etc, through which the Fed tries to control the supply of money in the economy. Foe example, through bank rate rise, the interest rate increases and the credit becomes costlier. People are discouraged from consuming through borrowing. This way, the Fed tries to influence production and consumption through influencing the demand and supply of money.
A very simple explanation on both these policies are presented in a very recent hub http://tigresosal.hubpages.com/hub/What … l-Policies Although, FED is a part of the overall governance system, it is autonomous and independent from the elected bodies. Both types of economic policies have their own roles and limitations in managing smooth run of the economy.
by lady_love1587 years ago
http://www.americanthinker.com/2011/03/ … tiger.htmlI am just amazed at how liberals believe democrats are for the middle class! Yes they are all about protecting us from corporate greed... but what about...
by Susie Lehto9 months ago
In my opinion there isn't anything about the Federal Reserve that is right, but at long last, Yellen has publicly admitted it in regard to inflation and employment. Shocking, apparently now the data is all...
by S.P. Kelly4 years ago
What did the "Occupy" Movements accomplish?It was a major event in NY, spreading like fire all over the country. But did it achieve anything for it's supporters? If yes, what? If no, why not?
by myvoternation7 years ago
Today's question: Do you believe Federal Reserve Chariman Ben Bernanke's monetary policy will cause inflation?Let's debate...**If you want, you can also post responses here on myvoternation site
by sumaiyafatima823 years ago
Objectives And limitations of monetary policy with special reference to RBIEconomic policy
by Kristin Trapp5 years ago
What is the difference between whole and term life insurance?Is the amount of time each insurance policy lasts the only difference or are there others? Does age play a role in determining which one is the best type of...
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.