Economic Policy
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About economic policy
Economic policy is one or more plan, program or step implemented by a government, presiding over an economy, for nation’s benefit. Economic policies could be used for uplifting an economy or rescuing it from a tight corner.
Range of economic policies
Economic policies cover a wide range of issues. They could encompass matters like establishing rates of interest and looking after deficit faced by a particular economy. There are other areas of focus in an economic policy such as market for laborers, national ownership as well as other areas that are important to a government.
Influences for economic policies
It has been observed that economic policies initiated by a government are implemented under influence of economic organizations, functioning at an international level, such as World Bank or International Monetary Fund. At times, ideas and ideologies of political parties help a government in formulating economic policies.
Monetary policy
Monetary policy is an important part of overall economic policies pursued by a government. It deals with money that is being circulated within an economy. This also implies that it deals with matters like inflation and rates of interest.
It deals with income policies that look to introduce methods, which are not monetary, in order to limit rate of inflation. Bank regulations, that deal with money multipliers or rather leave an impact on them, are also integral parts of monetary policies.
Trade policies
Trade policies are also important parts of an economic policy. It is concerned with areas like trade agreements and tariffs. Organizations that preside over such matters also fall within purview of trade policies.
