WHAT ARE THE DIFFERENCES BETWEEN FISCAL POLICY, MONETARY POLICY AND
SPENDING POLICY? HOW DOES EACH WORK?

Dear npb17, 

Fiscal Policy is "a government policy for dealing with the budget
(especially with taxation and borrowing)" (Source: WordNet ® 1.6, ©
1997 Princeton University,
http://dictionary.reference.com/search?q=fiscal+policy&r=67).

Monetary policy is "a central bank's actions to influence the
availability and cost of money and credit, as a means of helping to
promote national economic goals." (Source: Federal Reserve Bank of
Minneapolis - http://minneapolisfed.org/info/policy/).

The spending policy "determines how much of the total return will be
distributed to support programs and how much will be reinvested".
http://www.washington.edu/admin/treasury/office/SPO.htm

These are the definitions. That means that while fiscal policy
involves both tax revenues and spending, spending policy includes only
the later. The monetary policy is the policy on the level of the
regulation of the availability of money to spend - "which involves the
Federal Reserve and consists of increasing or decreasing the money
supply through open-market operations, changes in the discount rate,
and changes in reserve requirements.“

In the United States, the monetary policy is conducted by the
executive authority - the Federal Reserve, while fiscal policy,
although a matter of governmental consideration, might also be
determined by actions of the legislative authority (the Congress).

My search strategy was to search for each term, separated and
together.

I hope that answered your question. Please contact me if you need any
clarifications - I’d be happy to clarify the answer before you rate
it.

Fiscal Policy involves the government changing its expenditure and/or
tax rates.
Monetary Policy involves the central bank controlling money supply and
interest rates. Both are employed with the intention of influencing
aggregate demand, and hence levels of income, output and employment.