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The Role of Govt. : Economic Aims and Policies (Monetary Policy (Actions…
The Role of Govt. : Economic Aims and Policies
Achieve Full Employment
Achieve sustainable economic growth
Promote Balanced Regional Development
Improve Infrastructure
Create a just social enviorment
Maintain sate services
Control price stability/inflation
Broaden the tax base
Care for the enviorment
Monetary Policy
Actions from the ECB that influence money supply, interest rates and the availability of credit
Fiscal Policy
Any action by the govt. that influences the timing, magnitude, and structure of govt. current revenue and expenditure
Exchange rate policy
Controlled by ECB, refers to devaluation and revaluation of the euro
Direct Intervention
Govts. ability to directly intervene in the economy
Deregulaton
This is a form of direct intervention
Prices and Incomes policy
A method used by the govt. to control inflation by restraining prices and incomes.
Economic Planning
Involves consultation with social partners and they discuss economic policies with the view to improving the standard of living for all citizens.