Loading ...Monetary policy consists of the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault (bank reserves).
http://www.investopedia.com/terms/m/monetarypolicy.asp
Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy. It is the sister strategy to monetary policy through which a central bank influences a nation’s money supply.
http://www.investopedia.com/articles/04/051904.asp
So, Monetary policy is the banks job, money supply and rates etc. Fiscal policy, is the Gov’t job re tax and spend.
But you have to think about global policy too. The more you know about whats going on, like inside information, the easier it is to make decisions. Or bets.