Activist Policy

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Activist Policy

Any policy whereby a government seeks to direct or affect the economy in which it operates. For example, a government may offer a tax credit to homebuyers to stimulate homeownership. Likewise, it may cut taxes to encourage spending or it may increase its own spending to create demand for goods and services. All governments pursue activist policies inasmuch as they seek to encourage growth; however, the term connotes a policy in which the government plays a more direct role. See also: American Recovery and Reinvestment Act of 2009.
References in periodicals archive ?
His results overturn findings favoring activist policies in favor of prudent policies that ignore short-run stabilization concerns.
Clark's Labor Party was widely expected to return to the activist policies of the pre-reform era, but, contrary to initial worries, the Clark administration has been able to resist the temptation to abandon the road to economic liberalization.
In his authoritative history of the Great Depression era, Kennedy wrote of Hoover's 1932 program of activist policies that they helped "lay the groundwork for a broader restructuring of government's role in many other sectors of American life, a restructuring known as the New Deal.
Expanding capacity and jobs in the sector is key, and I'd still argue for a set of more activist policies such as better capital allowances, reduced corporation tax rates for manufacturing firms that increase output, national insurance holidays for such firms which expand employment, a much better funded investment bank and much more.
In addition to the time-consistency problem described above, a second potential difficulty may arise when the central bank tries to use the optimal activist policies described by equations (37) and (38) to stabilize the economy around its good steady state: Once the economy reaches the good steady state--immediately under (37) and eventually under (38)--these activist policies call for constant money growth and inflation rates and may therefore appear to private agents as being observationally equivalent to passive policies, such as a constant money growth rate rule.
Applying the innovative procedure Growth Diagnostic, it identifies Morocco's binding constraints to growth, and recommends activist policies for productive diversification and enhanced competitiveness of the economy.
Taft, who would have preferred an appointment to the Supreme Court, won the election, but did not agressively pursue Roosevelt's activist policies.
Historically a wealthy state although dependent on chemical and auto manufacturing, the economy has been diversified by activist policies, which create a climate attractive to banking and related business services, as well as to pharmaceuticals.
In the debate that started three years ago, I argued that the ideological purity of Islamism has been undermined by the activist policies of the political administration.
Optimism is possible because Howard shares the neoliberal conviction that humane and activist policies can be separated from ossified bureaucratic techniques.
Historically a wealthy state although dependent on chemical and auto manufacturing, the economy has been diversified by activist policies which create a climate attractive to banking and related business services, as well as to pharmaceuticals.
Yet, the 1930s illustrate that activist policies increase, not decrease, economic instability.