Fiscal and Monetary Policies

When people talk about monetary policy, they are referring to the management of interest rates and the total supply of money in circulation. This is generally carried out by central banks, such as the US Federal Reserve. This course will teach you how monetary policy impacts the changing of interest rates and influences money supply. You will also study equilibrium, which is the point where demand and supply for money cross.

Fiscal policy involves changing tax rates and levels of government spending to influence aggregate demand in the nation's economy. In this course, you will learn that instead of adjusting spending through fiscal policy, the government can adjust taxes to change aggregate demand. Increasing the supply of money in the marketplace will normally increase aggregate demand. You will study how central banks can reduce the amount of money in the market by selling bonds.

Fiscal and monetary policy are very important economic concepts as they can have profound effects on the lives and livelihoods of a country's entire population. This course will teach you how monetary policy affects the money market indirectly and how fiscal policy affects it directly. By the end of the course, your knowledge of essential economics fundamentals will be much stronger so get started, today.