Macroeconomic objectives and policy
- Created by: Niclamb123
- Created on: 09-04-16 18:48
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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
- Labour market
- Monetary policy
- Objectives of macro-economic policy
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