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Inter Differentiate Monetary Policy And Fiscal Policy Ist . Monetary policy is the actions taken by a country's central bank to regulate interest rates, control the supply of money and the amount of funds banks must hold rather than lend. Monetary refers to the supply of money, or the amount there. Differentiate Policy And Fiscal Policy Economic Challenges from volentisan.blogspot.com Monetary policy is the domain of the central bank. Both types of policy can have a significant effect on. Fiscal policy is administered by the ministry of finance.