Role of Fiscal and Monetary Policy in UK

Business
Management

Cover content
• Introduction
• Role of Fiscal policy in UK
• Role of monetary policy in UK
• Impact of Fiscal and Monetary policy on the economy
• Conclusion
• References

Introduction
Growth of economy is totally depended on fiscal and monetary policy of the
country. Economy of United Kingdom faced problems through financial crises
in the past time period. In order to come out with this situation they are put
several efforts and appropriate strategies. Below mention presentation is
defining role of fiscal and monetary policy in United Kingdom. Thus, along
with their impact on the economy because these are the terms impacts
effectively in both positive as well as negative manner.

Role of Fiscal policy in UK
Fiscal policy includes changing the level of government spendings and
taxation for influencing the rate of economic growth. In simple term it can be
said that, fiscal policy refers how government of United Kingdom utilise the
budget which affect economic activities, income distribution which is
generated from several sectors and allocation of resources.

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To achieve economic stability
Stabilisation of price level
 To attain maximum welfare of the people.
 Enhancement in savings

Impact of Fiscal and Monetary
policy on the economy
A fiscal and monetary policy are essential tools which bring an impact a
country's as well as authorities to influence the economy of United Kingdom
which is based on various issues such as tax policy, government expenditure
and business cycle and forecasting where economy is moving that is recession
and boom period of an economy. The monetary authorities needs to make an
appropriate predictions based on past records to regulate the money flow and
the rate of interest.