January 2013
Intermediate to advanced
554 pages
18h 10m
English
Content preview from Managerial Economics
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Chapter 25
Monetary Policy and Fiscal Policy
After studying this chapter, you should be able to understand:
- Macroeconomic policy is the action taken by the government through its different policies to achieve the macroeconomic objectives of the economy.
- Monetary policy is an operation by the monetary authorities of the country, whereas fiscal policy is an operation by the government.
- Monetary policy aims at achieving certain well-defined macroeconomic objectives.
- To achieve the objectives of monetary policy, the central bank has at its disposal the quantitative and the qualitative measures of the monetary policy.
- The effective working of monetary policy is hindered due to the existence of different obstacles.
- Fiscal policy refers to the government’s ...
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