Inter Office Memoramdum Essay Example | Topics and Well Written Essays - 750 words

Inter Office Memoramdum - Essay ExampleIn response to your query close to the type and enduringness of an economic policy as a large part of campaign, here I am presenting the following details that will give you an insight about the pros and cons associated with each policy and the basic complementary things associated with each courses of act. In order to have a control over finance, there are two courses of action namely Fiscal Policy and financial Policy. These are basically two separate, yet equally important strategies by which we atomic number 50 enact and control our pay and can stabilize economics fluctuation (Iwamoto, 2005, p.3). This came into play mainly after the Great Depression of the 1930s when it was necessary to regulate how and what was happening financially, how money was be taken in and then later spent, how budgets were enacted, how banks could conduct business, and so forth. Following paragraphs give detail about both Monetary Policy and Fiscal Policy. T he procedure by which the government, central bank, or monetary authority manages the impart of money or trading in foreign exchange markets is referred as Monetary Policy. Monetary Policy is based on the relationship between the rates of interest in an economy, that is the price at which money can be borrowed and the total supply of money. It employs a variety of tools like monetary base, reserve requirements, discount window landing and interest rates to control the price at which money can be borrowed or the total supply of money hence influences the outcomes of economy like economic growth, inflation, exchange rates with other currencies and unemployment.