Please enable JavaScript.
Coggle requires JavaScript to display documents.
Government Economic Policy - Coggle Diagram
Government Economic Policy
Fiscal Policy
A government sets the levels of taxation and spending in the economy in order to achieve its economic goals. It also deals with redistributing wealth and resources e.g by social welfare
spending- education, health care, infrastructure
revenue- taxation
Monetary Policy
used to control the supply of money available in the economy at a particular time.
sets interest rates (European Central Bank sets this)
help control inflation
Industrial Policy
primary
extracting natural resources e.g farming
secondary
using raw materials to make something new e.g manufacturing
tertiary
services e.g teaching
Foreign Direct Investment (FDI) and Indigenous Firms (IDA)
Direct Intervention Policy
deals with setting up semi-state enterprises to provide goods and services that are not produced or supplied by the private sector.
Government Aims
low inflation
full employment
sustainable economic growth
social and income equality
development of infrastructure
international trade
industrial and regional growth