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Impact of Monetary and Fiscal Policy on Business

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Added on  2023-02-02

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This presentation studies the different factors that affect the business of an organization, including the impact of monetary and fiscal policy, global factors, and regional trends. It discusses the advantages and disadvantages of these policies and their effects on business activities.

Impact of Monetary and Fiscal Policy on Business

   Added on 2023-02-02

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Introduction To Business
Environment
Impact of Monetary and Fiscal Policy on Business_1
TABLE OF CONTENTS
INTRODUCTION
MAIN BODY
Monetary Policy and Their Impact On Business
Fiscal Policy and Their Impact On Business
Global Factors and Their Impact On Business
Region Factors And Their Impact On Business
CONCLUSION
REFERENCES
Impact of Monetary and Fiscal Policy on Business_2
INTRODUCTION
Business environment is a study of all internal and external factors which can affect or
influence the business.
This presentation explains, how the different policies of government can affect the
performance of a business.
This presentation explains about monetary policy of a nation which can affect the
business of an organization by controlling the interest rates of short term loans and
money flow in the market.
The effect of Fiscal policy on the business of an organization is explained. This report
also gives a brief about the global and regional factor and their impact on the business
activities of an organization.
Impact of Monetary and Fiscal Policy on Business_3
Government main policy objectives
In managing the national economy governments attempt to achieve three Major
objectives
1. Maintaining employment
2. Control of Inflation
3. Economic growth
Impact of Monetary and Fiscal Policy on Business_4
Effects on economic growth
Increase in GDP leads to full employment and the risk of skill shortages
It can lead to excessive demand relative to supply.
Businesses respond to regulate demand by increasing prices leading to inflation
Impact of Monetary and Fiscal Policy on Business_5
Effects of full employment
It leads to increase in GDP resulting in economic growth
It can lead to rise in wages as a result of the bargaining power of employees
Businesses respond by increasing prices to cope with rise in wages leading to inflation
Impact of Monetary and Fiscal Policy on Business_6
Effects of control of inflation
Control prices deter investment
It leads to low economic growth
It reduces employment opportunities
Impact of Monetary and Fiscal Policy on Business_7
Monetary Policy and Their Impact On Business
Monetary Policy is a policy which is prepared and implement by central bank with the
consultation of central government.
Purpose behind this policy is to control monetary movement in the economy which is
arisen due to some situations like Inflation, consumption, growth and liquidity.
There are two types of monetary policy -
EXPANSIONARY MONETARY POLICY
CONTRACTION MONETARY POLICY
Impact of Monetary and Fiscal Policy on Business_8

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