Monetary policy is managed by a country's central bank and involves managing the money supply, interest rates, and other financial tools to control inflation, stimulate economic growth, and stabilize currency. It also helps manage unemployment rates and ensure price stability. Monetary policy could be expansionary (increasing the total supply of money in the economy more rapidly) or contractionary (slowing the growth of the money supply).
On the other hand, fiscal policy uses government revenue collection (taxation) and expenditure (spending) to influence the economy. It is managed by the government's treasury department. Fiscal policy can also stimulate or slow down economic growth through taxation and public spending changes. The government can increase spending to boost the economy during a downturn (expansionary fiscal policy) or reduce spending to cool the economy and prevent inflation during a boom (contractionary budgetary policy).
Monetary policy regulates the money supply and interest rates, while fiscal policy involves public spending and taxation. Both aim to achieve economic stability and growth, but they do so through different mechanisms.