The concept
Fiscal policy is government taxing and spending; monetary policy is control of rates and money.
Why it matters
Both influence growth, , and debt.
How markets interpret it
Large deficits can raise bond and yields.
How it may relate to gold
Concerns about debt sustainability are sometimes cited as a reason for gold .
Key takeaways
- Fiscal = government; monetary = central bank.
Knowledge check
Monetary policy is set by…