The economic policy of governments covers the systems for setting levels of taxation, government budgets, the money supply and interest rates as well as the labor market, national ownership, and many other areas of government interventions into the economy. The ideal economic policy, both for today and tomorrow, is very simple. Government should protect and defend against domestic and foreign aggression the lives and property of the persons under its jurisdiction, settle disputes that arise, and leave the people otherwise free to pursue their various goals and ends in life. Policy is generally directed to achieve particular objectives, like targets for inflation, unemployment, or economic growth. Sometimes other objectives, like military spending or nationalization are important. To achieve these goals, governments use policy tools which are under the control of the government. These generally include the interest rate and money supply, tax and government spending, tariffs, exchange rates, labor market regulations, and many other aspects of government.
This book entitled “Economic Policy and Growth” aims to introduce you to an area of public policy that affects everyone in one way or another: economic policy. It focuses on the nature, causes and features of economic growth. The book covers both the divided attitudes toward a “good” economy and the competing theories that economists offer on how to obtain a good economy. The present book provides this together with an analysis of the development of cultural background itself. The various agencies that participate in formulating government economic policy are illustrated, along with the many stages of producing and implementing the annual budget. The controversial areas of government spending and tax reform are discussed. It also highlights public finance policies that promote economic growth while meeting the need for fundamental public goods.
Focusing on the nature, causes and features of economic growth; this book serves as valuable resource for students studying economic policy, and for anyone who wants to gain a fundamental understanding of the interaction between market forces and government intervention.