Monetary policy consists of decisions and actions taken by the Central Bank to ensure that the supply of money in the economy is consistent with growth and price objectives set by the government. Specifically monetary policy works on two principle economic variables; Aggregate supply of money in the economy, and level of Interest rates. A monetary theory is a set of ideas about how monetary policy should be conducted within an economy. Monetary theory suggests that different monetary policies can benefit nations depending on their unique set of resources and limitations. It is based on core ideas about how factors like the size of the money supply, price levels and benchmark interest rates affect the economy. Economists and central banking authorities are typically those most involved with creating and executing monetary policy. It holds that change in money supply is the main driver in changes in economic activity. Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. Keynes holds that in the short run fiscal policy is important and that monetary policy becomes significant only when it affects fiscal variables. In