Economic policy is a term used to describe government actions that are intended to influence the economy of a city, state or nation. Some examples of these actions include setting tax rates, interest rates and government expenditures. The instruments of economic policy vary between the types of economic policies. Broadly speaking, there could be two types of economic policies, viz., (i) macro-economic policies and (ii) micro-economic policies. The principal instruments of macro-economic policy are: Fiscal Policy and Monetary Policy.
At the end of the course, you would be able to understand:-
- What is an Economic Policy ?
- Types of Economic Policies
- Fiscal Policy
- Monetary Policy