Macroeconomic policy makes it possible to regulate economic processes, which makes it possible to ensure economic growth. There are three types of such policies, each of which has its own goals and objectives: fiscal, monetary, and open economy policies.
Fiscal Macroeconomic Policy
Fiscal macroeconomic policy can be called fiscal or financial in another way. It acts on the main elements of the state treasury, therefore it is interconnected with the budget, taxes, expenses and state receipts. If we take market conditions into account, it is safe to say that this type of policy is the basis of all economic policy. However, it is also subdivided into subtypes - it includes tax, budgetary and income and expenditure policies.
The most important task of fiscal policy is to search for sources and methods of forming state monetary funds. Moreover, it is aimed not only at funds, but also at funds that contribute to the achievement of the goals of the economy.
Fiscal policy allows government agencies to exercise control and regulation over global processes based on the country's economy. This policy envisages providing funding for the public sector and maintaining monetary circulation at a sustainable level. The most rational use of production, scientific, technical and economic potential is also possible thanks to this policy.
How can the government use the fiscal direction profitably? With the help of its tools, it is able to influence supply and demand, which allows it to act on the economic situation and solve the crisis problems that have arisen.
Monetary policy
Monetary policy regulates the money supply and circulation in the state. This is achieved through the central bank or through independent action. It is important to understand that this policy affects both money and prices. It is designed to achieve several goals. Firstly, it stabilizes, increases the stability and efficiency of the economic system. Secondly, it provides employment for the population. Third, it helps to overcome the crisis. Fourth, it ensures economic growth. If we consider the difference between this policy and the fiscal one, we can say that the specialization of the monetary policy is narrower, since it is limited by the stabilization of monetary circulation.
The objectives of such a policy are to stabilize prices, suppress inflation, regulate the money supply, and supply and demand money.
Open Economy Policy
The economic policy of the state is also based on other types of policy. For example, there is a structural investment. Its goal is to form a sectoral and regional production structure. It also affects the proportions of production of various industry products. This policy comes in two versions: industrial and agricultural. There is also a social policy, the purpose of which is the social protection of people. She oversees the maintenance of dignified living conditions and the provision of essential needs. Environmental protection is also within the scope of this policy. It ranks next to the policy of employment and the regulation of incomes of the population.
