A Non-Interventionist Approach To Supply Side Policy
Would I recommend an interventionist or a non-interventionist approach to supply side policy in order to achieve the four key Macroeconomic objectives?
Four key Macroeconomics objective:
- Low and steady inflation
- Low unemployment
- High economic growth
- The balance of payments on the current account
Interventionism is where the governments are involved in the regulation of markets through government policy rather than leaving the markets to regulate themselves. Supply side economists believe that free markets promote economic efficiency and government intervention impairs economic efficiency. There are many ways in which they do this.
One way is labour market policies such as welfare benefits. Workers would be less likely
Four key Macroeconomics objective:
- Low and steady inflation
- Low unemployment
- High economic growth
- The balance of payments on the current account
Interventionism is where the governments are involved in the regulation of markets through government policy rather than leaving the markets to regulate themselves. Supply side economists believe that free markets promote economic efficiency and government intervention impairs economic efficiency. There are many ways in which they do this.
One way is labour market policies such as welfare benefits. Workers would be less likely