Fiscal and Monetary Policy

Fiscal and Monetary Policy

Fiscal Policy refers to revenues and expenditures of government and Monetary Policy refers to supply and control of money by RBI the central bank of India. The Objective of Fiscal Policy is to avoid recession and maintain adequate credit and borrowing facilities for financial institutions so that priority sectors and industry get adequate amount of investment. Monetary Policy aims at maintaining price stability and maintaining adequate flow of currency and control inflation.

Monetary PolicyFiscal PolicyMoney Supply

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