What are the different types of macroeconomic policies?
macroeconomic policies are divided into two main types of politicians. The first is fiscal policy concerning government initiatives such as taxation, expenditure and loan. Monetary policy is the second type and includes monetary policy, such as devaluation, monetary policy, such as quantitative release and policies that are designed to control interest rates. Many governments use both types of politicians. These indicators include the value of all goods and services produced in a country called its gross domestic product (GDP). They also include a percentage of people who are unemployed. Other indices include interest rates, average salaries, average debt debt indices and prices. Taxation determines how much money the individuals and companies must pay for the government, and therefore how much money the government can spend. Governments are able to set tax rates from personal income, inheritance, sales and other taxable measures to generate money for public services. Governments are trying to reacht balance between low tax rates for people or businesses and higher tax rates that generate more money to the government.
John Maynard Keynes, other economists and many world leaders, defended the unemployment and attempts to strengthen the economy by means of government wages. Every new government work will do a person from the unemployment register, but adds further expenditure of government finance. The Keynesian economy dictates that full employment creates consumer expenditures and therefore stabilizes the failed economy. Other economists, however, believe that they create a spiral of debt, such as those that can be seen at the beginning of the 21st century in the earth like Greece, Portugal and Ireland.
Governments will go into debt by lending money. Money lending allows governments to maintain expenditures while revenue is declining or allowing them to increase expenses. Fiscal policy based on borrowing is determined by interest rates at which they arefor the loan repaid. Rates are determined by the country's ability to repay their debts. As an alternative to lending, government can reduce expenditures, which could lead to greater unemployment, but to reduce interest rates that government, banks and businesses have to apply.One monetary policy used by governments to alleviate the shortcomings of expenditure is called quantitative release. This basically allows the government to print additional money without the devalue of the currency. Theoretically, the money is allocated to banks, which then lend money to businesses, allowing them to employ new workers. The devalued currency works in a similar way by creating further revenue, but weakening the actual currency and damaging the country's business balance between imports and exports.
Other macroeconomic policies include interest rate control and demand management. Interest rate management may increase or reduce consumer expenditure. High interest rate can cool the economy that is about to overheat, and low interest rate can avertrecession.
macroeconomic policy on demand management work in the same way. The government can increase or reduce the prices of specific resources or products by releasing additional resources or creating new products. Governments in the Middle East use this type of policy to increase or reduce oil price.