Government Economic Policy
- Created by: klmj98
- Created on: 11-05-16 11:18
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- Government Economic Policy
- Supply Side Policy - Labour Market
- Trade Unions
- State Welfare Benefits
- Minimum Wages
- Tax Rate
- Make Easier to hire and fire
- Zero Hour Contracts
- Taxes on Labour. Laffer curve
- Reducing the cost of changing jobs
- Allow private pensions to transfer between jobs
- Education and training
- Supply Side Policy-The Financial and Capital Market
- Deregulation
- Greater competition among banks and building societie
- Encouraging Saving
- Tax Privileges for Savings
- Reduction for Public Sector Borrowing
- This is to avoid crowding out
- Promote Entrepreneurs
- Deregulation
- Supply Side Policy- Goods Market
- Deregulation
- Remove barriers to entry to encourage competition. In NI more than one gas company.
- Privatisation
- Eg Royal Mail
- Subsidies
- Deregulation
- Fiscal Policy
- Government Expediture
- Transfer Payments
- Current Government Spending
- Capital Spending
- Taxation
- Direct
- Indirect
- Progressive
- Regressive
- Proportional
- Borrowing
- Public Sector Net cash requirement
- The national debt
- Budget deficit or surplus
- Government Expediture
- Monetary Policy
- Interest Rate
- Expansionary = low. Contractionary = high
- Exchange Rate
- Expansionary =weak (SPICED). Contractionary = strong
- Money Supply
- Expansionary = Money allowed to grow. Refer to quantitative easing in 2009. BOE buys bonds from commercial banks.
- Contractionary = Money restricted
- Interest Rate
- Supply Side Policy - Labour Market
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