Comparison between monetary policy and fiscal policy -
On the basis of effectiveness - fiscal policy is very effective
as it creates direct impact on the economy while monetary policy is
less effective in comparison to fiscal policy as it does not create
direct impact on the economy it encourages and discourages in
investing to both companies and individuals
On the basis of implementation- To target the aggregate demand
fiscal policy uses tool of taxation and government spending while
fiscal policy helps in controlling the interest rates and in total
supply of money