You are using an older browser version. Please use a supported version for the best MSN experience.

What's the Difference Between Monetary and Fiscal Policy?

Monetary and fiscal ... So what is the difference? Well, they're both used by governments to quell economic growth if there are economic excesses, or spur growth if there isn't enough of it. Most of the quelling is done through monetary policy. Let's get into it. Do you know when interest rates go down and your credit card debt becomes less expensive, and you spend a little more money, or that house you've wanted becomes easier to finance with mortgage debt? When the Federal Reserve influences interest rates, that influences the economy. Lower rates is a stimulant. That's monetary policy. Okay, here's what fiscal policy is: With a lower tax rate, you have more money to spend. That's fiscal policy. It's related to taxes. Want to see how all of this impacts companies? Watch the video above to see. Bull Market Fantasy @BullMktFantasy Disrupting the World of Fantasy Sports Cramer Confessional: Jim Cramer's One Fantasy Drafting Regret Cramer's Fantasy Football Draft Got a Little Crazy - Watch Jim Cramer Breaks Down His Top Lesson From His Fantasy Draft Premium Pick: Jim Cramer: Want Proof of Economy's Strength? Look to Home Depot Exclusive: CBD-Infused Happy Tea to IPO in January Cryptos: Bitcoin Is Still Nowhere Near Being Money Billionaire Club: Nepal's Only Billionaire Shares His Success Mantra Ask the Expert: Ask The Expert: Should You Add Gold to Your Portfolio? TheStreet Explains: The Benefits of Using a Credit Card Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud Catch Up: Today's Top News Videos Below

Recent Videos

Featured Partners

image beaconimage beaconimage beacon