Role and Impact of Fiscal and Monetary Policy in UK Economy

INTRODUCTION TO BUSINESS
ENVIRONMENT

INTRODUCTION
 Business environment of any country is regulated by economic policies and
stability.
 The presentation will outline role and impact of monetary and fiscal policy in
UK economy.

ROLE OF FISCAL POLICY
 Fiscal policy aims at creating stability in economy by managing income of
private sector and aggregate demand at the time of economic downturn.
 The role of policy is to manage strong growth of all sectors at the time of
moderate economic activity.
 Fiscal policy plays a crucial role in maintaining a situation of full employment
and stability in UK economy

Key role of Fiscal policy in UK economy
 Enlightening competitiveness of country
 Handling market failures
 Enabling safe and stable living environment to society
 Modifying distribution of wealth and income