{"id":74173,"date":"2025-08-01T17:23:15","date_gmt":"2025-08-01T11:53:15","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?p=74173"},"modified":"2025-08-31T17:56:08","modified_gmt":"2025-08-31T12:26:08","slug":"fiscal-policy-vs-monetary-policy","status":"publish","type":"post","link":"https:\/\/www.5paisa.com\/finschool\/fiscal-policy-vs-monetary-policy\/","title":{"rendered":"Fiscal Policy vs. Monetary Policy: Who Really Controls the Economy"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"74173\" class=\"elementor elementor-74173\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-180a7ab elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"180a7ab\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cac4104\" data-id=\"cac4104\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a64e838 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a64e838\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-832ec94\" data-id=\"832ec94\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cc7d404 elementor-widget elementor-widget-text-editor\" data-id=\"cc7d404\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><span style=\"font-weight: 400;\">In the ever-evolving landscape of macroeconomics, two powerful tools stand at the forefront of economic management: fiscal policy and monetary policy. These mechanisms, wielded by governments and central banks respectively, shape the trajectory of national economies, influence inflation, employment, and growth, and ultimately determine the financial well-being of citizens. But when it comes to real control\u2014who truly steers the economic ship?<\/span><\/li><li><span style=\"font-weight: 400;\">In 2020, as COVID-19 disrupted India\u2019s economic engine, the government and the Reserve Bank of India (RBI) executed a coordinated policy response. The Ministry of Finance, under Nirmala Sitharaman, launched the \u20b920 lakh crore Atmanirbhar Bharat fiscal stimulus, which included direct benefit transfers, credit guarantees for MSMEs, and infrastructure spending to revive demand and employment. <\/span><\/li><li><span style=\"font-weight: 400;\">Simultaneously, the RBI\u2019s Monetary Policy Committee slashed the repo rate from 5.15% to 4.00%, reduced the CRR, and infused liquidity through Targeted Long-Term Repo Operations (TLTROs). While fiscal policy addressed supply-side bottlenecks and social welfare, monetary policy ensured credit availability and financial market stability. As inflation edged up in late 2021, the RBI began normalizing liquidity, while the government tapered fiscal support. This episode demonstrated that fiscal policy drives structural recovery, but monetary policy anchors macroeconomic stability\u2014especially when timed in tandem.<\/span><\/li><li><span style=\"font-weight: 400;\">This blog explores the nuances, intersections, and tensions between fiscal and monetary policy, offering a comprehensive view of their roles, tools, effectiveness, and the delicate balance they must maintain.<\/span><\/li><\/ul><h2><strong>Understanding the Basics<\/strong><\/h2><h3><strong>Fiscal Policy: The Government\u2019s Economic Lever<\/strong><\/h3><p><span style=\"font-weight: 400;\">Fiscal policy refers to the use of government spending and taxation to influence economic conditions. It is crafted and implemented by elected officials, typically the Ministry of Finance or Treasury and is embedded in national budgets and legislative frameworks.<\/span><\/p><p><strong>Key tools of fiscal policy include:<\/strong><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Government spending on infrastructure, education, healthcare, and welfare<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Taxation policies, including income tax, corporate tax, and indirect taxes<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Subsidies and transfer payments to stimulate demand or support vulnerable groups<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Fiscal policy can be expansionary or contractionary (reducing spending or increasing taxes to cool down inflation).<\/span><\/p><h3><strong>Monetary Policy: The Central Bank\u2019s Precision Instrument<\/strong><\/h3><p><span style=\"font-weight: 400;\">Monetary policy is the domain of a country\u2019s central bank, such as the Reserve Bank of India (RBI), the Federal Reserve (US), or the European Central Bank (ECB). Its primary goal is to maintain price stability, control inflation, and support sustainable economic growth.<\/span><\/p><p><span style=\"font-weight: 400;\">Key tools of monetary policy include:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest rate adjustments (e.g., repo rate, reverse repo rate)<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Open market operations (buying\/selling government securities)<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reserve requirements (CRR, SLR)<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Liquidity management tools (e.g., marginal standing facility)<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Monetary policy can also be expansionary (lowering interest rates to encourage borrowing and spending) or contractionary (raising rates to curb inflation).<\/span><\/p><h2><strong>Comparing the Two: A Strategic Overview<\/strong><\/h2><table style=\"height: 410px;\" width=\"971\"><thead><tr><th><p><strong>Feature<\/strong><\/p><\/th><th><p><strong>Fiscal Policy<\/strong><\/p><\/th><th><p><strong>Monetary Policy<\/strong><\/p><\/th><\/tr><\/thead><tbody><tr><td><p><span style=\"font-weight: 400;\">Authority<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Government (Ministry of Finance)<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Central Bank<\/span><\/p><\/td><\/tr><tr><td><p><span style=\"font-weight: 400;\">Tools<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Taxes, spending, subsidies<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Interest rates, reserve ratios, OMOs<\/span><\/p><\/td><\/tr><tr><td><p><span style=\"font-weight: 400;\">Speed of Implementation<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Slower (requires legislation)<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Faster (policy committee decisions)<\/span><\/p><\/td><\/tr><tr><td><p><span style=\"font-weight: 400;\">Political Influence<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">High<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Low (often independent)<\/span><\/p><\/td><\/tr><tr><td><p><span style=\"font-weight: 400;\">Targeted Impact<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Sector-specific<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Economy-wide<\/span><\/p><\/td><\/tr><tr><td><p><span style=\"font-weight: 400;\">Time Lag<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Longer<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Shorter<\/span><\/p><\/td><\/tr><tr><td><p><span style=\"font-weight: 400;\">Flexibility<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">Limited by budget constraints<\/span><\/p><\/td><td><p><span style=\"font-weight: 400;\">More agile<\/span><\/p><\/td><\/tr><\/tbody><\/table><h2><strong>The Tug of War: Who Really Controls the Economy?<\/strong><\/h2><p><span style=\"font-weight: 400;\">The answer isn\u2019t binary. Both policies are interdependent, and their effectiveness often hinges on coordination. However, their influence varies depending on the economic context.<\/span><\/p><h4><strong>During Recessions<\/strong><\/h4><ul><li><span style=\"font-weight: 400;\">In downturns, fiscal policy often takes the lead. Governments may increase spending on infrastructure or offer tax rebates to stimulate demand. For example, during the COVID-19 pandemic, countries worldwide launched massive fiscal stimulus packages to support households and businesses.<\/span><\/li><li><span style=\"font-weight: 400;\">Monetary policy, meanwhile, complements these efforts by lowering interest rates and injecting liquidity into the banking system. But in deep recessions, especially when interest rates are already near zero,monetary policy may hit a liquidity trap, limiting its effectiveness.<\/span><\/li><\/ul><h4><strong>During Inflationary Periods<\/strong><\/h4><ul><li><span style=\"font-weight: 400;\">When inflation surges, monetary policy becomes the primary tool. Central banks raise interest rates to reduce borrowing and cool down demand. This was evident in 2022\u20132023, when central banks globally tightened monetary policy to combat post-pandemic inflation.<\/span><\/li><li><span style=\"font-weight: 400;\">Fiscal policy, if expansionary during inflation, can worsen the problem. Hence, governments may need to adopt contractionary measures, cutting spending or increasing taxes to support monetary tightening.<\/span><\/li><\/ul><h2><strong>Case Studies: Real-World Dynamics<\/strong><\/h2><p><span style=\"font-weight: 400;\">India\u2019s Policy Mix<\/span><\/p><p><span style=\"font-weight: 400;\">In India, the RBI manages monetary policy through its Monetary Policy Committee (MPC), while the Ministry of Finance handles fiscal decisions. The coordination between these entities is crucial.<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>2016\u20132019:<\/strong> RBI maintained accommodative monetary policy to support growth, while the government focused on fiscal consolidation.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>2020\u20132021:<\/strong> Faced with pandemic-induced recession, both policies turned expansionary, RBI slashed rates, and the government launched Atmanirbhar Bharat stimulus packages.<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">These examples highlight that neither policy alone is sufficient\u2014especially in crises. Their synergy is essential.<\/span><\/p><h2><strong>Challenges and Limitations<\/strong><\/h2><h4><strong>Fiscal Policy Constraints<\/strong><\/h4><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Political gridlock can delay implementation.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Budget deficits and public debt limit spending capacity.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Targeting issues may lead to inefficient allocation of resources.<\/span><\/li><\/ul><p><strong>Monetary Policy Constraints<\/strong><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Liquidity traps reduce effectiveness in deep recessions.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transmission lags can delay impact on the real economy.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Limited scope for sector-specific interventions.<\/span><\/li><\/ul><h2><strong>The Ideal Scenario: Policy Coordination<\/strong><\/h2><p><span style=\"font-weight: 400;\">When fiscal and monetary policies are aligned, their combined effect can significantly enhance macroeconomic outcomes. Here&#8217;s how the synergy works:<\/span><\/p><p><strong>Expansionary Fiscal + Accommodative Monetary = Recession Recovery<\/strong><\/p><p><span style=\"font-weight: 400;\">Fiscal policy boosts demand through increased government spending or tax cuts. Monetary policy lowers interest rates or injects liquidity to encourage borrowing and investment. Together, they stimulate aggregate demand, reduce unemployment, and accelerate recovery.\u00a0<\/span><\/p><p><strong>\u00a0Contractionary Fiscal + Tight Monetary = Inflation Control<\/strong><\/p><p><span style=\"font-weight: 400;\">Fiscal restraint (cutting spending or raising taxes) reduces excess demand. Monetary tightening (raising interest rates) curbs credit growth and inflationary pressures. This combination is effective when inflation is demand-driven and needs broad-based cooling.<\/span><\/p><h2><strong>\u00a0Policy Conflicts: When Coordination Breaks Down<\/strong><\/h2><p><span style=\"font-weight: 400;\">Despite the ideal, conflicts often arise due to differing mandates and political pressures:<\/span><\/p><p><span style=\"font-weight: 400;\">Populist fiscal measures (e.g., subsidies, tax cuts before elections) may boost short-term demand. Central banks, focused on price stability, may respond by tightening monetary policy. This sends mixed signals to markets, undermines policy credibility, and can dilute effectiveness. Example: If fiscal expansion fuels inflation, monetary tightening may neutralize its impact, leading to policy paralysis.<\/span><\/p><h2><strong>\u00a0Who Should Take the Lead?<\/strong><\/h2><p><span style=\"font-weight: 400;\">Leadership depends on the economic cycle and the nature of the challenge:<\/span><\/p><h3><strong>\u00a0In Recessions: Fiscal Policy Leads<\/strong><\/h3><p><span style=\"font-weight: 400;\">Governments can directly inject demand via spending and transfers. Monetary policy supports by keeping rates low and ensuring liquidity. Fiscal tools are more targeted and immediate in addressing unemployment and demand shocks.<\/span><\/p><h3><strong>In Inflationary Booms: Monetary Policy Leads<\/strong><\/h3><p><span style=\"font-weight: 400;\">Central banks act swiftly to raise rates and control money supply. Fiscal policy must avoid expansionary moves that exacerbate inflation. Monetary tools are more precise and timely in managing inflation expectations.<\/span><\/p><h3><strong>In Normal Times: Monetary Anchors, Fiscal Builds<\/strong><\/h3><p><span style=\"font-weight: 400;\">Monetary policy maintains price and financial stability. Fiscal policy focuses on long-term structural reforms\u2014infrastructure, education, productivity. This division ensures macro stability with developmental momentum.<\/span><\/p><h2><strong>\u00a0Why Monetary Policy Is More Predictable<\/strong><\/h2><p><span style=\"font-weight: 400;\">Central banks are independent and guided by inflation-targeting frameworks. Their decisions are data-driven and less influenced by political cycles. Fiscal policy, on the other hand, is subject to budget constraints, electoral pressures, and legislative delays. Hence, monetary policy offers greater consistency, while fiscal policy can be volatile but transformative.<\/span><\/p><h2><strong>Conclusion: A Balanced Equation<\/strong><\/h2><p><span style=\"font-weight: 400;\">Fiscal and monetary policies are two sides of the same coin. They serve distinct purposes but must be aligned to achieve macroeconomic stability. While governments control the purse strings, central banks manage the flow of money. Neither can single-handedly steer the economy but together, they form a powerful duo. For policymakers, economists, and citizens alike, understanding this dynamic is key to navigating economic cycles, anticipating policy shifts, and making informed financial decisions.<\/span><\/p><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1f0046c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1f0046c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-80975ea\" data-id=\"80975ea\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6acc2e7 elementor-widget elementor-widget-heading\" data-id=\"6acc2e7\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Frequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ba4e6ea elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ba4e6ea\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f2a1706\" data-id=\"f2a1706\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c6491b6 elementor-widget elementor-widget-accordion\" data-id=\"c6491b6\" data-element_type=\"widget\" data-widget_type=\"accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2071\" class=\"elementor-tab-title\" data-tab=\"1\" role=\"button\" aria-controls=\"elementor-tab-content-2071\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">What\u2019s the difference between fiscal policy and monetary policy in simple terms?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2071\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"1\" role=\"region\" aria-labelledby=\"elementor-tab-title-2071\"><p>Fiscal policy is like the government managing a household budget\u2014deciding how much to spend and where to get the money.Monetary policy, on the other hand, is like the central bank adjusting the thermostat of the economy.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2072\" class=\"elementor-tab-title\" data-tab=\"2\" role=\"button\" aria-controls=\"elementor-tab-content-2072\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Who actually controls the economy the government or central bank?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2072\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"2\" role=\"region\" aria-labelledby=\"elementor-tab-title-2072\"><p>Both play crucial roles, but in different ways. The government influences demand directly through spending and taxation. The central bank influences it indirectly by making borrowing cheaper or more expensive.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2073\" class=\"elementor-tab-title\" data-tab=\"3\" role=\"button\" aria-controls=\"elementor-tab-content-2073\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">How do interest rates and government spending affect inflation and growth?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2073\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"3\" role=\"region\" aria-labelledby=\"elementor-tab-title-2073\"><ul><li><p><strong>Interest rates<\/strong>: Lower rates make loans cheaper, boosting spending and investment\u2014great for growth but risky for inflation. Higher rates do the opposite, cooling down inflation but slowing growth.<\/p><\/li><li><p><strong>Government spending<\/strong> : More spending can stimulate demand and create jobs, especially during downturns. But excessive spending can also fuel inflation if supply doesn\u2019t keep up.<\/p><\/li><\/ul><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>In the ever-evolving landscape of macroeconomics, two powerful tools stand at the forefront of economic management: fiscal policy and monetary policy. These mechanisms, wielded by governments and central banks respectively, shape the trajectory of national economies, influence inflation, employment, and growth, and ultimately determine the financial well-being of citizens. But when it comes to real &#8230; <a title=\"Fiscal Policy vs. Monetary Policy: Who Really Controls the Economy\" class=\"read-more\" href=\"https:\/\/www.5paisa.com\/finschool\/fiscal-policy-vs-monetary-policy\/\" aria-label=\"Read more about Fiscal Policy vs. Monetary Policy: Who Really Controls the Economy\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":74179,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18,78],"tags":[],"class_list":["post-74173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-learn-every-aspect-of-markets"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts\/74173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/comments?post=74173"}],"version-history":[{"count":12,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts\/74173\/revisions"}],"predecessor-version":[{"id":74439,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts\/74173\/revisions\/74439"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media\/74179"}],"wp:attachment":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media?parent=74173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/categories?post=74173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/tags?post=74173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}