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What is the difference between fiscal policy and monetary policy?

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What is the difference between fiscal policy and monetary policy?
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    1. In the economic playbook, fiscal policy is like the government's game plan for spending and taxes, aiming to rev up or cool down the economy. It's about the budget – spending more to heat things up or cutting back to cool them down. On the flip side, monetary policy is the central bank's playbook. IRead more

      In the economic playbook, fiscal policy is like the government’s game plan for spending and taxes, aiming to rev up or cool down the economy. It’s about the budget – spending more to heat things up or cutting back to cool them down.

      On the flip side, monetary policy is the central bank’s playbook. It’s all about adjusting interest rates to either speed up the economy or put the brakes on. Imagine it as tweaking the gas pedal – press it for acceleration or ease off to slow down.

      So, fiscal policy is the government’s spending and tax strategy, while monetary policy is the central bank playing with interest rates to manage the economy’s speed. They’re two different strategies in the economic game.

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