FISCAL POLICY VS MONETARY POLICY Presented by Surabhi Agrawal
About Myself A Chartered Accountant (CA) and Company Secretary (CS) by Qualification, I love teaching and Public speaking 1. a. Have secued llIndaank4th and:sthinACCndFinalrespectively 3. Have appeared for UPSC Mains 2017 For the courses related to Monetary Policy of India, go to the following link: 4. https://unacademy.com/course/monetary-policy-of-india-upsc-cse/LGLITJFV https://unacademy.com/course/advanced-concepts-of-monetary-policy- simplified/HSN46R3Y
MONETARY POLICY VS FISCAL POLICY The terms "expansionary" and "contractionary are used the same way in relation to fiscal policy as to monetary policy Types of monetary policies: Contractionary Fiscal Expansionary Monetary Policy Contractionary Monetary Policy Expansionary Fiscal Policy Policy Helps slow down the econonm or sow economi Helps speed up the economy or increase economic growth he economy Helps speed up the economy or increase economic growth ID
Monetary Policy Fiscal Vs Policy
1. Fiscal policy is framed by Government whereas Monetary policy is framed by RBI Government Role in the Economy 2. Fiscal policy is carried through Fisca Po onetary Po li instruments like taxation and public spending whereas Monetary policy has instruments like interest rates, open market operations and Reserve requirements. Taxing Spending Bonds Reserves Interest Rates
3. Fiscal policy influences the overall demand and supply for commodities and services in the nation's economy whereas Monetary Policy is a strategy used by the Central Bank to regulate credit creation in the economy. 4. Time taken to implement Fiscal policy is comparatively more than monetary policy. 5. Monetary policy is more effective to combat Inflation than fiscal policy.
6. Fiscal policy is generally more effective during Recession than monetary policy 7. Political influences are more in Fiscal policy than monetary policy. 8. Fiscal policy has more impact on Inclusive growth in the economy than monetary policy.
RBI controls Monetary Policy Monetary Interest Rates GOI controls Fiscal Policy Fiscal Taxation Policy Credit Ratios Policy Spending Econom Growth ic Inflation Control Social Stability Goals
Rank 358 UPSC 2018, Chartered accountant and company secretary with 4 All India ranks, passionate learner and above all a positive soul.