Economic Development : Fiscal and Monetary Policy

It is an estimation and adjustments of taxes and government spending that impacts the economy of a nation.

• FISCAL POLICY

• MONETARY POLICY

• UNIVERSAL BANKING

the process whereby the monetary authority attempts to achieve a desired set of economic goals by controlling either the money supply, cost and availability of credit or the allocation of credit to its various uses

• FISCAL POLICY

• MONETARY POLICY

• UNIVERSAL BANKING

a banking system that offers a wide range of banking and financial services in comparison to traditional banking institutions.

• FISCAL POLICY

• MONETARY POLICY

• UNIVERSAL BANKING

This policy is designed to boost the economy. It is mostly used in times of high unemployment and recession. The aim of this policy is to stimulate the

economy and ensure consumers’ purchasing power does not weaken.

• Expansionary Fiscal Policy

• Contractionary Fiscal Policy

• Expansionary Monetary Policy

• Contractionary Monetary Policy

Intended to reduce the rate of monetary expansion to fight inflation. The policy reduces the money supply in the economy to prevent excessive speculation and unsustainable capital investment.

• Expansionary Fiscal Policy

• Contractionary Fiscal Policy

• Expansionary Monetary Policy

• Contractionary Monetary Policy

The economic growth must be supported by additional money supply. The money injection boosts consumer spending, as well as increases capital investments by businesses.

• Expansionary Fiscal Policy

• Contractionary Fiscal Policy

• Expansionary Monetary Policy

• Contractionary Monetary Policy

This policy is designed to slow economic growth in case of high inflation. It raises taxes and cuts government spending

• Expansionary Fiscal Policy

• Contractionary Fiscal Policy

• Expansionary Monetary Policy

• Contractionary Monetary Policy

What can the government do to slow the economy down?

• lower taxes

• raise taxes

• spend more

• spend less

Fiscal Policy is the

• use of taxing and interest rates to influence the economy

• use of money supply and interest rates to influence the economy

• use of taxing and govt. spending to influence the economy

• use of govt. spending and money supply to influence the economy

_____________refers to central bank activities that are directed toward influencing the quantity of money and credit in an economy. By contrast, ________refers to the government's decisions about taxation and spending.

• Monetary policy, Fiscal policy

• Fiscal policy, Monetary policy

• RRR cuts, GDP targeting

• Inflation targeting, relief bills