fiscal policy

Examples of fiscal policy in the following topics:

• Stability Through Fiscal Policy

  • Governments can use fiscal policy as a means of influencing economic variables in pursuit of policy objectives.
  • Governments use fiscal policy to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of:
  • In the classical view, the expansionary fiscal policy also decreases net exports, which has a mitigating effect on national output and income.
  • This is because, all other things being equal, the bonds issued from a country executing expansionary fiscal policy now offer a higher rate of return.
  • Other possible problems with fiscal stimulus include the time lag between the implementation of the policy and detectable effects in the economy, and inflationary effects driven by increased demand.

• Growth Through Monetary Policy

  • Monetary policy seeks to further economic policy goals through influencing interest rates.
  • Through fiscal policy, it uses its power to tax and to spend.
  • Since the 1970s, monetary policy has generally been formed separately from fiscal policy.
  • There are several monetary policy tools available to achieve these ends:
  • The primary tool of monetary policy is open market operations.

• Trading blocs and agreements

  • A common market provides for harmonious fiscal and monetary policies while free trade areas and customs unions do not.

• Mixed Economies

  • The American School (also known as the National System) is the economic philosophy that dominated United States national policies from the time of the American Civil War until the mid-twentieth century, and is an example of a mixed economy.
  • It consisted of a three core policy initiative: protecting industry through high tariffs (1861–1932), government investment in infrastructure through internal improvements, and a national bank to promote the growth of productive enterprises.
  • Dirigisme is an economic policy initiated under Charles de Gaulle of France designating an economy where the government exerts strong directive influence.
  • Social market economy is the economic policy of modern Germany that steers a middle path between the goals of socialism and capitalism within the framework of a private market economy and aims at maintaining a balance between a high rate of economic growth, low inflation, low levels of unemployment, good working conditions, public welfare and public services by using state intervention.
  • However, the government would wield considerable indirect influence over the economy through fiscal and monetary policies designed to counteract economic downturns and capitalism's tendency toward financial crises and unemployment, along with playing a role in interventions that promote social welfare.

• New Slants on Old Adages

  • In fact, he drew considerable criticism for proposing interventionist fiscal and monetary policies which had never been tried before.

• The International Monetary Fund (IMF)

  • Through this activity and others, such as surveillance of its members' economies and policies, the IMF works to improve the economies of its member countries.
  • Member countries of the IMF have access to information on the economic policies of all member countries, the opportunity to influence other members' economic policies, technical assistance in banking, fiscal affairs, and exchange matters, financial support in times of payment difficulties, and increased opportunities for trade and investment.
  • The fund typically analyzes the appropriateness of each member country's economic and financial policies for achieving orderly economic growth, and assesses the consequences of these policies for other countries and for the global economy.
  • IMF conditionality is a set of policies or "conditions" that the IMF requires in exchange for financial resources.
  • Conditionality is the most controversial aspect of IMF policies.

• Mistakes in Communication-Part I

  • There they gathered in the conference room of a large hotel to hammer out policies and financial decisions.
  • He lobbied hard and successfully against our proposal, and the quarterly meeting ended without a solution to our fiscal predicament.

• Corporate Policies

  • There is often a disconnect between a company's ethics policies and its actual practices.
  • These policies can be simple exhortations in broad, highly generalized language (typically called a corporate ethics statement), or they can be more detailed policies, containing specific behavioral requirements (typically called corporate ethics codes).
  • It is hoped that having such a policy will lead to greater ethical awareness, consistency in application, and the avoidance of ethical disasters.
  • Not everyone supports corporate policies that govern ethical conduct.
  • Examine how corporate policies may lead to greater ethical awareness, consistency in application, and the avoidance of ethical disasters in an organization

• Combining internal and external equity

  • The next step will be to combine these two sets of data, to create a pay policy line.
  • The pay policy line can be drawn freehand, by graphing actual salaries and connecting the dots.
  • Alternatively, statistical techniques such as regression analysis are used to create a pay policy line.
  • You can also enact a policy of "leading" the market by raising the line, and the policy of "lagging" the market by lowering the line.

• Introduction to the Federal Reserve

  • The Federal Reserve System is the central banking system of the United States, which conducts the nation's monetary policy.
  • Congress established three key objectives for monetary policy—maximum employment, stable prices, and moderate long-term interest rates—in the Federal Reserve Act.
  • Its duties have expanded over the years, and today, according to official Federal Reserve documentation, include conducting the nation's monetary policy, supervising and regulating banking institutions, maintaining the stability of the financial system, and providing financial services to depository institutions, the U.S. government, and foreign official institutions.
  • The Fed is independent within government in that "its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government. " Its authority is derived from statutes enacted by the U.S.
  • Since the inflation of the 1970s, Federal Reserve monetary policy has emphasized preventing rapid escalation of general price levels.