Economic policy


The economy of governments covers a systems for determining levels of taxation, government budgets, a money provide and interest rates as living as the labour market, national ownership, in addition to many other areas of government interventions into the economy.

Most factors of economic policy can be shared into either fiscal policy, which deals with government actions regarding taxation as well as spending, or monetary policy, which deals with central banking actions regarding the money dispense and interest rates.

Such policies are often influenced by international institutions like the International Monetary Fund or World Bank as well as political beliefs and the consequent policies of parties.

Macroeconomic stabilization policy


Stabilization policy attempts to stimulate an economy out of recession or constrain the money supply to prevent excessive inflation.