What is the difference between monetary policy and fiscal policy?

Monetary policy refers to the actions taken by a central bank to control the money supply, influence interest rates, and stabilize the economy. Central banks adjust monetary policy to manage inflation, control unemployment, and influence overall economic activity. Fiscal policy, on the other hand, involves government decisions on taxation, spending, and borrowing. Through fiscal policy, governments aim to influence the economy by adjusting public spending and taxation to either stimulate or cool down the economy. While monetary policy is controlled by central banks, fiscal policy is determined by government lawmakers.