Difference Between Monetary Policy And Fiscal Policy In Pakistan


Difference Between Monetary Policy And Fiscal Policy In Pakistan shall be displayed here at this page.

Monetary Policy:

Monetary Policy refers to the tool or strategy usually used by the Central Bank to regulate and control the money supply in the economy in order to achieve macroeconomic objectives such as inflation, consumption, liquidity, and growth. The monetary policy is comprised of two types i-e expansionary and contractionary. We can define expansionary monetary policy as the policy in which money supply is increased and interest rate decreases wheres the contractionary monetary policy is that policy in which the money supply decreases and the interest rates increases. The primary object of regulating monetary policies by the central bank is to maintain or stable the price, control inflation, strengthen the banking system and economic growth. Monetary policy is quite different from fiscal policy. Here below we are going to describe the detail difference between monetary and fiscal policy in Pakistan. keep reading this article till the end will definitely give you keen knowledge regarding two terms.

Difference Between Monetary Policy And Fiscal Policy In Pakistan

Fiscal Policy:

Fiscal Policy refers to the policy of the government in which it utilizes its tax revenue and expenditure to influence the aggregate demand and supply for products and services in a country. Usually, the fiscal policies are administered by the ministry of finance and changed every year by the government of a country. There are two types of fiscal policies such as expansionary fiscal policy and contractionary fiscal policy. The expansionary fiscal policy refers to the policy in which government minimizes taxes and increases public expenditure. The contractionary fiscal policy refers to the policy in government increases taxes and reduces public expenditure. Fiscal policies are concerned with government revenue and expenditure and made for short durations. For further detail information must read the key difference between monetary policy and fiscal policy. below given bullet form Difference Between Monetary Policy And Fiscal Policy In Pakistan

Difference Between Monetary Policy And Fiscal Policy In Pakistan

check out: Difference Between Balance Sheet And Income Statement

Key Difference Between Monetary Policy And Fiscal Policy In Pakistan:

Here below are the following points from which you can easily distinguish between Monetary and Fiscal Policy.

Monetary Policy Fiscal Policy
Monetary Policy refers to the tools usually used by the Central Bank to regulate the money supply in the economy Fiscal Policy refers to the tools used by the Fiscal Policy refers to the policy of government in which it utilizes its tax revenue and expenditure to influence the aggregate demand and supply for products and services in a country.

 

Monetary policies are administered by the Central Bank Fiscal Policies are administered by the Ministry of finance.
The change in monetary policy usually depends upon the economic status of the country Fiscal policy changes every year by the government.
Monetary policies last for longers Fiscal policies are made for short durations
Monetary policies are concerned with borrowing and financial arrangements Fiscal policies are concerned with the government revenue and expenditures.

 


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