How is the country s fiscal policy and currency controlled? Whoever has the answer, thank me .

Updated on Financial 2024-02-24
11 answers
  1. Anonymous users2024-02-06

    Fiscal policy. Monetary policy is two important policy tools for the country's macroeconomic control, both of which affect the balance between aggregate supply and aggregate demand from the perspective of value, so as to achieve macroeconomic regulation and control. Fiscal policy is an important lever for the state's macroeconomic regulation and control, mainly including taxes, budgets, national bonds, purchasing expenditures and fiscal transfers.

    and other means. Monetary policy is an important tool for the country's macroeconomic regulation and control, and it is the first bank.

    Use monetary policy tools.

    Regulate the supply and demand of money and control the scale of credit to achieve macroeconomics.

    The general term for the guidelines and strategies for regulating and controlling objectives is an important part of the country's macroeconomy.

    Monetary policy tools are the measures, means and methods adopted by the bank to implement monetary policy to achieve its role in regulating and controlling the amount of money and credit. The monetary policy tool is the reserve requirement ratio.

    Interest rates, rediscount rates, open market operations.

    ** Bank refinancing, etc.

  2. Anonymous users2024-02-05

    Monetary policy is a variety of policies and measures for banks to use various tools to regulate the amount of money in order to achieve the set goals, and then affect the macroeconomic operation. It mainly includes credit policy and interest rate policy, shrinking credit and raising interest rates are "tight" monetary policies, which can suppress aggregate social demand, but restrict investment and short-term development, on the contrary, it is a "loose" monetary policy, which can expand aggregate social demand, which is beneficial to investment and short-term development, but is easy to cause an increase in the inflation rate. Fiscal policy includes the state's tax policy and fiscal expenditure policy, and tax increases and expenditure reductions are "tight" fiscal policies, which can reduce the total amount of social demand, but are not conducive to investment.

    On the contrary, it is a "loose" fiscal policy, which is conducive to investment, but the expansion of total social demand is likely to lead to inflation.

    Although these two policies have a strong ability to regulate in macroeconomic operations, it is difficult to fully achieve the macroeconomic regulation and control objectives by relying on one policy alone, and without the cooperation of both sides, the implementation effect of a single policy will be greatly weakened, which requires the two to coordinate with each other, cooperate closely, and give full play to their comprehensive advantages. There are four different combinations of fiscal policy and monetary policy, which one depends on the objective economic environment, in fact, it mainly depends on the judgment of the objective economic situation. In a nutshell, "one loosening and one tightening" is mainly to solve structural problems; The use of "double loose" or "double tight" alone is mainly to solve the total volume problem.

    Monetary policy should play an important role in maintaining the stability of the currency value and the balance of aggregates.

  3. Anonymous users2024-02-04

    Fiscal and monetary policies regulate the economy by regulating aggregate domestic demand. ** Increasing fiscal spending increases the demand for aggregate social goods, which in turn promotes an increase in output. In the same way, the expansion of the money supply increases the amount of money in the market, which also increases the aggregate demand of the society, which in turn increases output.

  4. Anonymous users2024-02-03

    Through the tools of fiscal policy: taxation, purchases, transfer payments, and public debt, the aggregate demand of the society is regulated to balance the total supply of the society, so that the society and the economy can grow steadily without economic depression and inflation. There are three types of fiscal policy:

    Expansion, contraction, balance.

    Monetary policy tools: 1. Statutory reserve ratio: that is, the proportion of each deposit absorbed by commercial banks to the central bank.

    2. Rediscount rate: that is, the holder will request the realization of an unexpired bill from a commercial bank, which is called discounting; The interest paid to the bank is called the discount rate; Commercial banks apply to other commercial banks or the central bank for the realization of unexpired bills, which is called rediscounting, and the interest paid to them is called the rediscount rate.

    3. Open market business: that is, the central bank buys and sells valuable in the market, which is the most commonly used monetary policy tool of the central bank.

  5. Anonymous users2024-02-02

    The first is fiscal policy. When the aggregate social demand is greater than the aggregate social supply, the economy is overheated, and at this time, a tight fiscal policy is adopted, increasing taxes and reducing fiscal expenditure, so as to compress the aggregate social demand and achieve a balance between the total social supply and demand; When the aggregate social demand is less than the aggregate social supply, the economy is in recession, and at this time, an expansionary fiscal policy is adopted, taxes are reduced, and fiscal expenditure is increased, so as to increase the aggregate social demand and achieve a balance between the total supply and demand of the society.

    The second is monetary policy: when the aggregate demand of the society is greater than the aggregate supply of the society, the economy is overheated, at this time, a tight monetary policy is adopted, the monetary policy is tightened, the bank interest rate and the deposit reserve ratio are raised, and the treasury bonds are sold in the open market to recover the currency, so as to compress the aggregate demand of the society and achieve a balance between the total supply and demand of the society; When the aggregate social demand is less than the aggregate social supply, the economy is depressed, at this time, the expansionary monetary policy is adopted, the monetary policy is relaxed, the bank interest rate and the deposit reserve ratio are reduced, and the treasury bonds are released in the open market, so as to increase the aggregate social demand and achieve a balance between the total supply and demand of the society.

    Generally, in times of economic crisis and depression, it is advisable to adopt a double loose policy, that is, an expansionary fiscal policy and an expansionary monetary policy. When the economy is overheating, it is advisable to adopt a double tightening policy, that is, a combination of tight fiscal policy and tight monetary policy.

  6. Anonymous users2024-02-01

    (bai1) is differently defined.

    Fiscal policy refers to the first pass on fiscal revenue.

    zhi and the adjustment of the total amount of expenditure

    Respond to aggregate demand, so that the internal and aggregate supply are compatible.

    should be economic policy. It includes fiscal revenue policy and fiscal expenditure policy.

    Monetary policy refers to the guidelines and corresponding policy measures adopted by a country's ** bank (monetary authority) to regulate and control the amount of money and credit in order to achieve certain macroeconomic goals. It is characterized by its indirect effect on the macroeconomy through the intermediary of interest rates.

    2) The content is different. All policies related to fiscal revenue and expenditure, such as changes in taxation, the issuance of treasury bills, the purchase of grain at a relatively high protective price stipulated by the state, the amount of investment in public works or goods and services, etc., belong to fiscal policy, while a series of policies related to banks, such as the adjustment of interest rates, belong to monetary policy.

    3) The policymakers are different. Fiscal policy is formulated by the state and must be approved by the National People's Congress or its Standing Committee. And monetary policy is set directly by the ** bank.

    Fiscal policy and monetary policy are both economic instruments in macroeconomic regulation and control, and they are in a juxtaposition relationship.

  7. Anonymous users2024-01-31

    Both fiscal and monetary policies are used to regulate the macroeconomy, and the two are not the same in terms of regulating and controlling the objects and executive departments.

    Monetary policy: refers to the policy of ** banks (such as the People's Bank of China) to regulate the amount of money ** through ** means (interest rate cuts and interest rate hikes) or quantitative means (raising and reducing the reserve ratio);

    Fiscal policy: refers to the policies that affect macro demand or supply by relevant financial departments (such as China's Ministry of Finance, etc.) by adjusting tax rates or raising and reducing expenditures (such as building public facilities).

  8. Anonymous users2024-01-30

    The difference is fiscal policy.

    Copying policy is to use the first fiscal budget, and monetary policy is to control the amount of money issued, the two are completely different, fiscal policy does not include monetary policy.

    Fiscal policy to give you an example, just like the current ** to build high-speed rail is a fiscal policy, ** to pay for the construction of the project.

    Now the central bank is ready to raise the reserve ratio, which is monetary policy. Fiscal policy is the decision of the central bank, while monetary policy is the decision made by the central bank.

  9. Anonymous users2024-01-29

    Fiscal Policy: Fiscal policy is the use of the Budget to achieve certain macroeconomic objectives through taxation and, through public spending on consumption and investment. Fiscal policy is divided into fiscal revenue and fiscal expenditure.

    Fiscal revenue may include: taxes, profits, debts, and fees.

    Fiscal expenditures can include, first, purchases, which refer to the spending on goods and services – the purchase of armaments, the construction of roads, the payment of civil servants' salaries, etc., and secondly, transfers, e.g., expenditures on social welfare, insurance, poverty relief and subsidies to increase the incomes of certain groups (such as the elderly or the unemployed).

    Monetary policy: refers to the general term for the various policies and measures adopted by the bank to control and regulate the amount of money or credit in order to achieve its specific economic objectives, including credit policy, interest rate policy and foreign exchange policy.

  10. Anonymous users2024-01-28

    Monetary Policy:

    Monetary policy, also known as monetary policy, refers to the general term for various guidelines, policies and measures adopted by the People's Bank of China to control and regulate the amount of money and credit in order to achieve its specific economic goals. The essence of monetary policy is that the state adopts different policy trends such as "tight", "loose" or "moderate" according to the economic development of different periods.

    Various policies and measures are taken to adjust the market interest rate by adjusting the amount of money used by various tools, and various policies and measures are taken to affect the capital investment of the private sector through changes in the market interest rate, and to affect the macroeconomic operation by affecting aggregate demand. The three major instruments of monetary policy to regulate aggregate demand are the statutory reserve ratio, open market operations, and discount policy.

    Fiscal policy: Fiscal policy refers to the choice of the level of fiscal expenditure, taxation and borrowing, or the decision on the level of fiscal revenue and expenditure in order to promote the increase in employment level, reduce economic fluctuations, prevent inflation, and achieve stable growth. In other words, fiscal policy refers to the policy of changing taxes and expenditures in order to affect aggregate demand and thus employment and national income. Variable taxation refers to a change in the tax rate and tax rate structure.

    Variable expenditure refers to the change in the purchase of goods and services, as well as transfers. It is one of the main policies of the state to intervene in the economy.

    Fiscal policy is formulated by the state, represents the will and interests of the ruling class, has a distinct class character, and is constrained by a certain level of development of the social productive forces and the corresponding economic relations. Fiscal policy is an integral part of the country's overall economic policy and is closely linked to other economic policies. In formulating and implementing fiscal policies, it is necessary to coordinate and cooperate with other economic policies, such as financial policies, industrial policies, and income distribution policies.

    There are two forms of spending: one is purchases, which refer to the spending on goods and services – buying tanks, building roads, paying judges, etc., and second, transfers to boost the incomes of certain groups such as the elderly or the unemployed. Taxation is another form of fiscal policy that affects the overall economy in two ways.

    First, taxes affect people's income. In addition, taxes can affect goods and factors of production, and therefore incentives and behaviour.

  11. Anonymous users2024-01-27

    Differences and Connections Between Fiscal Policy and Monetary Policy:

    Differences: The meanings are different. Fiscal policy refers to the economic policy that affects aggregate demand through the adjustment of total fiscal revenue and expenditure, so that it is compatible with aggregate supply. It includes fiscal revenue policy and fiscal expenditure policy. Monetary policy is.

    Refers to the guidelines adopted by a country's ** bank (monetary authority) to regulate and control the amount of money and credit in order to achieve certain macroeconomic objectives and its corresponding policy measures. It is characterized by its indirect effect on the macroeconomy through the intermediary of interest rates.

    The content is different. All policies concerning fiscal revenues and expenditures, such as changes in taxation, the issuance of treasury bills, the purchase of grain at a higher protective price stipulated by the state, and the amount of investment in public works or goods and services, etc., are all fiscal policies. A series of policies related to banks, such as the adjustment of interest rates, belong to monetary policy.

    The policymakers are different. Fiscal policy is formulated by the state and must be approved by the National People's Congress or its Standing Committee. And monetary policy is set directly by the ** bank.

    Connections: 1. Fiscal policy and monetary policy are both economic policies for national macroeconomic regulation and control. The two are mainly through the implementation of expansionary or contractionary policies, adjusting the relationship between aggregate social supply and aggregate demand, maintaining the balance of economic aggregates, promoting the optimization of the economic structure, and achieving sustained, rapid, and healthy development of the national economy.

    2. The ultimate goal of fiscal policy and monetary policy is consistent. Both require the value of the currency.

    The economy is growing steadily, workers are fully employed, and the balance of payments is balanced to promote the socialist city.

    The development of the field economy.

    3. Under general conditions, fiscal policy and monetary policy work in tandem with each other. Fiscal policy is characterized by the intensity of policy operation, and has the effect of rapidly initiating investment and stimulating economic growth, but it is easy to cause excessive deficits, economic overheating, and inflation. Monetary policy, on the other hand, is mainly fine-tuned, and it lags behind in kick-starting economic growth, but it has long-term results in curbing economic overheating and controlling inflation.

    It is regulated and controlled through the amount of money and the amount of credit, and has the characteristics of direct, rapid and flexible. Since the coordination and cooperation of fiscal policy and monetary policy is the combination of two different long-term policies, the two can form a joint force and play a regulatory role in the effective operation of the market economy. 4. The means of realizing fiscal policy and monetary policy are intersecting.

    Whether the fiscal policy can be smoothly implemented and achieve results is inextricably linked with the coordination and cooperation of monetary policy. Treasury bonds link the fiscal and monetary policies that were originally implemented by the financial organs and the first bank respectively, and become the best combination of fiscal policy and monetary policy.

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