Economic Policies Of Every Country Essay - 964 Words

Economic policy of every country has different aims that usually include the following ones: sustainable growth and development (increase in output (GDP) growth), price stability (inflation targeting), high employment etc. The policymakers have different tools to manage these issues, primarily by influencing the aggregate demand and supply, such as interest rates, requirements to the bank reserves, tax rates etc. Therefore, this is crucial to understand how these macroeconomic indicators are interconnected, such as for example output and unemployment, unemployment and inflation, and the mechanism of policy actions in each case. Thus, the aim of this essay is to explain how the government should conduct the economic policy in order to achieve the aims, focusing particularly on the unemployment. Actually, the unemployment rate is one of the most crucial macroeconomic indicators of the country. The unemployment rate has different definitions, varying from country to country. The offici al definition of the unemployment, according to the International Labor Organization, is the amount of people that want and ready to work and seeking for the job, and the unemployment rate, accordingly, is the percentage of unemployed in the total labor force (Reuters Financial Glossary). The unemployment rate is crucial for the economy in general, because the higher labor force involved in production, the higher amounts of goods and services a country might produce, in other words employmentShow MoreRelatedMacroeconomic Policies Of National Development1117 Words   |  5 Pageseconomy defines economic changes that affect household, companies and market. Macro economy can be used to analyze the things that influence policy goals such as economic growth, price stability, employment and the achievement of sustainable balance sheet. Macroeconomic problems occur in every country, both developed countries and developing countries. 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Inside the economic policy you will find all sorts of things that help make the policy stand onRead MoreEconomic Policies And Economic Policy1096 Words à ‚  |  5 Pages In every country there s a government and economy. Each counties government helps or tries to help recover, stabilize, and grow the economy. First thing we need to look at is economic policy. Economic policy refer to actions the government makes in the economic field. For example the taxation, the government supply, money supply, interest rates, along with the labor market, and national ownership. Inside the economic policy you will find all sorts of things that help make the policy stand onRead MoreInternational Monetary Fund And The World Bank1561 Words   |  7 Pageshelping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial power institutions are geared towards moving resources from the poor countries to the rich western coun tries. The end result is creating a situation where the poor countries sunk into more economic suicidal conditionRead MoreThe European Union s Convergence Criterias : Advantage Or Disadvantage?1586 Words   |  7 Pagesor Disadvantage? This study analyses the extent to which the Economic and Monetary Union of the European Union’s convergence criterias have an influence on the fiscal policy in the member countries, and if there is connection, if this connection is positive or negative for each member state. It will look on the question if it is possible to unite so many different countries under one union, and if you can do this, while the countries still are still sovereign. This research will be carried out through