Monetary Policy Vs. Fiscal Policy: Comparison, Examples

  • Monetary policy seeks to control the economy by manipulating the money supply and interest rates.
  • Fiscal policy is designed to achieve the same end using targeted taxes and spending.
  • The Achilles heel of both types of policy are lags between implementation and results.
  • Visit Personal Finance Insider for more stories.

In 1992 when presidential campaign advisor, James Carville, famously told Bill Clinton’s staff, “It’s the economy, stupid!” he was stressing the importance of what matters most to a majority of voters.

The two most widely recognized tools to influence the economy, and keep constituents happy, are monetary policy, created by the

Read more…


Please enter your comment!
Please enter your name here