Macroeconomic policy instruments refer to macroeconomic quantities that can be directly controlled by an economic policy maker. Instruments can be divided into two subsets: a) Monetary policy instruments and b) Fiscal policy instruments. Monetary policy is conducted by the Federal Reserve or the central bank of a country or supranational region (Euro zone). Fiscal policy is conducted by the Executive and Legislative Branches of the Government and deals with managing a nation’s Budget.
Read more about Macroeconomic Policy Instruments: Monetary Policy, Fiscal Policy, History
Famous quotes containing the words policy and/or instruments:
“A country survives its legislation. That truth should not comfort the conservative nor depress the radical. For it means that public policy can enlarge its scope and increase its audacity, can try big experiments without trembling too much over the result. This nation could enter upon the most radical experiments and could afford to fail in them.”
—Walter Lippmann (1889–1974)
“Whilst Marx turned the Hegelian dialectic outwards, making it an instrument with which he could interpret the facts of history and so arrive at an objective science which insists on the translation of theory into action, Kierkegaard, on the other hand, turned the same instruments inwards, for the examination of his own soul or psychology, arriving at a subjective philosophy which involved him in the deepest pessimism and despair of action.”
—Sir Herbert Read (1893–1968)