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MACROECONOMIC POLICY: Government policy aimed at the aggregate economy, usually to promote the macro goals of full employment, stability, and growth. Common macroeconomic policies are fiscal and monetary.

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Lesson 9: Macro Basics | Unit 4: Policies Page: 12 of 16

Topic: Viewpoints <=PAGE BACK | PAGE NEXT=>

People can take different views of government and economic polices that depend on political philosophies.
  • Liberal Democrat: The view that government is the only way to keep the economy running smoothly, using paternalistic, hands-on policies. If a problem arises, then government is the answer.
  • Conservative Republican: The view that government is the problem, not the solution. The best government is the least government because it is a tyrannical oppressor of individual rights and freedoms.
  • One view or the other is usually the basis of an economic policy.
The government can be the solution and it can be the problem.

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TIGHT MONEY

A general condition of the economy in which money is not relatively abundant nor plentiful. In modern times, this condition arises when the monetary authority (Federal Reserve System) undertakes contractionary monetary policy. With tight money, interest rates are generally higher and inflation tends to remain low. The alternative to tight money is easy money.

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Today, you are likely to spend a great deal of time at a going out of business sale trying to buy either income tax software or a how-to book on the art of negotiation. Be on the lookout for malfunctioning pocket calculators.
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This isn't me! What am I?

John Maynard Keynes was born the same year Karl Marx died.
"To sit back and let fate play its hand out, and never influence it, is not the way man was meant to operate."

-- John Glenn, astronaut, U.S. senator

MSE
Mean Squared Error
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