What are Fiscal Policy, Monetary Policy and Macroeconomic Policy?
All the policies taken by the Government to control the economy of the country are called Fiscal Policies. The two main instrument of fiscal policy are government expenditure and taxation. How government decides taxes, collect them and spend them comes under the fiscal policy. In broad level all the action done by government to maintain the economy is collectively called fiscal policy.
The actions taken by Reserve Bank of India, which is the monetary authority, to control the economy is collectively called Monetary Policy. Time to time RBI makes changes in the various rates like CRR, Repo Rate, Reverse Repo Rate, SLR etc. to maintain the supply of money that is liquidity in the system.
How the individual firms, markets, the households are using resources and making the country productive is being measured in Microeconomic policy. In these policies the centre of attraction is on very small level of the economy as it will collectively help the country to become more competitive.