Fiscal and Monetary Policy

What are they and how do they impact the markets?

Fiscal Policy is the use of government expenditure and revenue collection (taxation) to influence the economy.

Monetary Policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment.

A government’s use of these economic tools generally also has the affect of keeping fixed income and equity markets in “equilibrium. So how can this knowledge impact the markets and how Indexed Universal LIfe can work? Attend the next SolomonSchool.