Economic policy encompasses the strategies and actions governments employ to manage their nation's economy. This involves fiscal measures like taxation and...
Economic policy consists of the actions governments and central banks take to influence a country's economy, aiming to achieve specific macroeconomic goals such as growth or stability.
The two primary types are fiscal policy (government spending and taxation) and monetary policy (managed by central banks, affecting money supply and interest rates).
It impacts citizens through taxation, job availability, inflation, interest rates on loans and savings, and the overall cost of goods and services.
Fiscal policy is set by governments and legislatures, while monetary policy is typically managed by independent central banks, such as the Federal Reserve or the European Central Bank.