Monetary Policy vs Fiscal Policy

Economic policy is a tool used by the powers at be in the United States to try and control the economy. There are two types of economic policy, monetary policy and fiscal policy. These two levers on the economy do the following:

• Monetary policy is the Federal Reserve’s efforts to grow the economy by changing interest rates and the money supply.
• Fiscal policy is the federal government adjusting government spending/borrowing, and taxes, aimed at achieving economic growth.