Differences from fiscal policy
- Controlled by central banks not governments.
- Uses interests rates and money supply instead of taxes and spending.
- Usually quicker to implement while governments need legislation.
- Focus on price stability and financial conditiond and less on employment, income distribution and growth.
- Usually politically independent while governments are obviously driven by political views.
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Economics and politics student from Germany. Interested in a broad field of topics and trying to easily break down topics from his studies to everyone.
In this Mini-Series, we will talk about the key concepts of macroeconomics. I will shortly explain each concept in a respective post. This is the last part of the Mini-Series, covering the monetary policy.
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