Economic Policy

Topics: Monetary policy, Economics, Inflation Pages: 4 (1137 words) Published: July 10, 2013
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Economic policy

Economic policy refers to the actions that governments take in the economic field. It covers the systems for setting interest rates and government budget as well as the labor market, national ownership, and many other areas of government interventions into the economy. Such policies are often influenced by international institutions like the International Monetary Fund or World Bank as well as political beliefs and the consequent policies of parties. -------------------------------------------------

Types of economic policy[edit]
Almost every aspect of government has an economic aspect involving a near superfluous quantity of terms. A few examples of the kinds of economic policies that exist include: * Macroeconomic stabilization policy, which attempts to keep the money supply growing at a rate that doesn't result in excessive inflation. * Trade policy, which refers to tariffs, trade agreements and the international institutions that govern them. * Policies designed to create economic growth

* Policies related to development economics
* Policies dealing with the redistribution of income, property and/or wealth * As well as: regulatory policy, anti-trust policy, industrial policy and technology-based economic development policy [1] Macroeconomic stabilization policy== Stabilization policy attempts to stimulate an economy out of recession or constrain the money supply to prevent excessive inflation. * Fiscal policy, often tied to Keynesian economics, uses government spending and taxes to guide the economy. * Fiscal stance: The size of the deficit or surplus

* Tax policy: The taxes used to collect government income. * Government spending on just about any area of government * Monetary policy controls the value of currency by lowering the supply of money to control inflation and raising it to stimulate economic growth. It is concerned with the...
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