Fiscal policy refers to the government's use of spending and taxation to influence the economy. It involves decisions about how much money the government should spend on public goods and services, and how much it should collect in taxes from individuals and businesses. Fiscal policy is often used to stimulate economic growth during a recession or to cool down an overheating economy.
Monetary policy, on the other hand, is the process by which a country's central bank manages the supply and cost of money in the economy. It involves decisions about interest rates, the money supply, and the availability of credit. Monetary policy is often used to control inflation and maintain economic stability.
In summary, fiscal policy is the government's use of spending and taxation to influence the economy, while monetary policy is the central bank's use of interest rates, the money supply, and credit availability to manage the economy.