macroeconomic policy


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macroeconomic policy

the setting of broad objectives by the government for the economy as a whole and the use of policy instruments to achieve those objectives. Macroeconomic objectives include FULL EMPLOYMENT, the avoidance of INFLATION, ECONOMIC GROWTH and BALANCEOF-PAYMENTS EQUILIBRIUM. FISCAL POLICY, MONETARY POLICY and SUPPLY-SIDE POLICIES are the main policy instruments used to regulate the economy.

Generally, the achievement of a broad objective, such as avoiding inflation, involves the setting of‘intermediate targets’, like, for example, the permissible rate of growth of the MONEY SUPPLY. See alsoDEMAND MANAGEMENT, PRICES AND INCOMES POLICY, INTERNAL-EXTERNAL BALANCE MODEL, FIXED TARGETS, OPTIMIZING, BUSINESS CYCLE, EQUILIBRIUM LEVEL OF NATIONAL INCOME, DEFLATIONARY GAP, INFLATIONARY GAP, MEDIUM-TERM FINANCIAL STRATEGY, ECONOMIC POLICY, MICROECONOMIC POLICY, NEW AND OLD PARADIGM ECONOMICS.

References in periodicals archive ?
At present the macroeconomic policy framework is not favourable for savings.
To a question' he said that it is consideration of IMF to have a sound macroeconomic policy and framework and structural reforms to boost growth potential over the time which will help all the Pakistani people.
Labour's macroeconomic policy has moved through several distinct stages over the past two decades and the very definition of what exactly constitutes a 'macroeconomic policy' has been contested.
While keeping inflation and the fiscal accounts under control are important objectives of macroeconomic policy, disregarding important development objectives could be highly detrimental for an economy's long-term prospects.
The report recommends that governments in the region introduce macroeconomic policy coherence aimed at improving productivity and increasing average wages as well as "participatory and inclusive social dialogue between governments, workers, and employers achieved through a fundamental reform of labor relations.
For the medium term, Guatemala's main challenges are the attainment of a higher rate of economic growth and a lasting reduction in poverty, further strengthening of the macroeconomic policy framework, and upgrading financial sector regulation and supervision.
Armitage stresses the country's low indebtedness in the public sector as a factor for sound macroeconomic policy.
Part 4, on macroeconomic policy, offers a critique of the new consensus macroeconomics model from a post-Keynesian perspective.
There is one common challenge: We need to rethink our standard macroeconomic policy mixes and make quality job creation and decent work a central target of macroeconomic policies, alongside high growth, low inflation and balanced public budgets.
A large part of successful macroeconomic policy is clear delineation of how the government will act in various states of the world," Bullard explained.
Although the connections between macroeconomic policy, and international trade and business administration are not clear, at least he is somehow connected with economics.
Summary: In order to boost the country's economy and to establish a sustained growth, privatization in Tunisia has been part of the macroeconomic policy since the Change of November 7, 1987.