Supply-side policies

Supply-side policies

We have already looked at demand-side policies, but governments also have the option to use supply-side policies.  These are policies that are designed to increase the productive capacity of a country.  As with demand-side policies there are two types: Interventionist policies and Market-based policies.  It is important not just to understand the difference between these, …

Monetary policy

Monetary policy

We have already looked at one aspect of demand-side policy, fiscal policy, and it is important that we also understand the other type, monetary policy.  Monetary policy is the use of the interest rate, and money supply, in order to affect the level of aggregate demand in an economy.  We also need to appreciate that …

Fiscal policy

Fiscal policy

We have now looked at the 5 different macroeconomic objectives of governments (low and stable inflation, low unemployment, stable economic growth, promoting equity and a favourable balance of payments), and the next step is to look at the government policies available to try and meet these objectives.  The types of policies can be split into …

Keynes ‘v’ Hayek

Keynes ‘v’ Hayek

The website Econstories.tv has produced a rap video about the arguments of Keynes and Hayek. It gives a good summary of the two and also shows the conflict between their ideas (a potential issue for evaluation). The website also has the lyrics (and song download) and further information about the 2 economists. Please upgrade your …