Macroeconomic policy: types, goals and objectives
Macroeconomic policy of the state isactions that are aimed at regulating economic processes in order to maintain the pace of economic growth, they are designed to limit inflation and ensure full employment. The main task of macroeconomic policy is to balance unemployment and inflation.
Fiscal Macroeconomic Policy
In another way, this type of policy is calledfinancial or budgetary. It extends to the basic elements of the treasury of the state and is directly related to taxes, budget, cash receipts and expenditures of the state. In the market conditions, this policy is the basis of economic policy. This category includes budgetary, taxation, as well as a policy of expenses and incomes.
The most important task of fiscal policy is tosearch for ways and sources of the formation of state funds, as well as funds that will contribute to the fulfillment of economic policy goals. Thanks to the conduct of fiscal policy, state bodies can regulate global economic processes in the country, maintain the stability of monetary circulation, finance, provide financing for the public sector, promote better use of scientific, technological, production and economic potential. With the help of fiscal policy tools, the state can influence aggregate supply or demand, thereby influencing the economic situation, taking anti-crisis measures.
Monetary and Monetary Policy
This policy is designed to regulate the monetarymass and circulation in the state through direct independent influence or through the central bank. It affects not only money, but also prices.
The aim of monetary policy is tostabilization, increasing the sustainability and efficiency of the entire economic system, providing employment, overcoming the crisis and economic growth. Unlike fiscal monetary and monetary macroeconomic policy has a narrower specialization and is limited only by the stabilization of circulation of money.
The objectives of this policy are to suppressinflation, stabilization of prices, exchange rate, purchasing power, regulation of the money supply, supply and demand for money through the banking system.
Monetary policy is tough whenThere is a reduction in the money supply, a restriction of emissions, high interest rates on loans are maintained. The policy aimed at increasing the mass of money or not hampering this process, helping to obtain cheap lending, is characterized by softness.
Macroeconomic policy in an open economy
Fiscal and monetary policy is the backbone of the state's economic policy. However, there are other categories.
Structural and investment policy rendersinfluence on the formation and change of the regional and industrial production structure of the country. It affects the ratio, the proportion of production of various products of the industry. The manifestations of this policy are agrarian and industrial policy.
Social policy takes a firstthe turn to social protection of people, to ensure the primary needs of the population, to maintain decent living conditions, as well as environmental protection. Next to this policy is the policy of employment, regulation of wages and incomes.
Foreign economic policy, which extends to economic relations with other states, also deserves attention.