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:
“It is always the best policy to speak the truth, unless of course you are an exceptionally good liar.”
—Jerome K. Jerome (1859–1927)
“We are all instruments endowed with feeling and memory. Our senses are so many strings that are struck by surrounding objects and that also frequently strike themselves.”
—Denis Diderot (1713–84)