Macroeconomic objectives and policy

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  • Macro-economic objectives and policy
    • Objectives of macro-economic policy
      • Economic growth
      • Sustainable growth
      • Low and stable inflation rate
      • Full employment
      • Balance of payments equilibrium on current account
      • Redistribution of income
      • Fiscal balance
    • Macro-economic policy instruments
      • Monetary policy
        • Inflation targets
        • Interest rate changes
        • Quantitative easing
      • Fiscal policy
        • Automatic stabilisers
        • Discretionary fiscal policy
      • Supply-side policies
        • Labour market
          • Reduction in trade union power
          • reduction in unemploy-ment
          • Improvements in human capital
          • Reduction in employment  protection legislation
        • Product market
          • Privatisation
          • Deregulation
          • Contracting out
          • Trade liberalisation
          • Promotion of new/small firms
        • Capital market
          • Deregulation of financial market
          • Reduction in corporation tax
        • Criticisms
          • Increased inequality
          • Time lags
          • The incentive effects of tax cuts may be over-estimated
          • Ineffective
          • Adverse effects of deregulation

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