What is economic policy analysis?

In order to understand the concept of economic policy analysis, it is necessary to understand the importance of economic policy. The term, economic policy, refers to these actions or decisions based on the government of a designated country that focuses on making a form of effect in the economy. One of the most important instruments used by governments to achieve these required economic changes is to apply fiscal policies to cause the government in the macro and in the expansion of the micro economy. Thus, the analysis of economic policy concerns a study by these different types of politicians, including their origin, colliding factors, accepting policies citizens and the impact of these policies on the economy.

Reflections on the origin of economic policy during the analysis of economic policy are based on the threshold that the origin of economic policy is not necessarily internal. Governments mostly carry out the assessment of the economy itself,To propose a specific type of economic policy. In other cases, the source of economic policy may be external, which could propose the outside parties, or is part of a package that has been provided as a means of making some changes in the economy. For example, the analysis of economic policy of some economic programs in developing countries may be found to come from external sources in the form of creditors or donors who use monetary factors as incentives to attract the government to carry out these economic policies. An example of this can be seen in conditions associated with grants or money that can provide multilateral development banks such as the African Development Bank or the World Bank.

Further consideration of vanalysis of economic policy is the influence of these economic policies on the citizens of the country. For example, economic policies may be unpopular which citizens will not be well received due to short -term to medium -term problems that experience,Before they can expect to see any long -term improvement. Incorporation into economic policy analysis is also an influence that has politicians on the economy. For example, the government's decision to introduce different types of fiscal policies is usually made with the expectation to cause a change in the current economic situation for this country.