Tools for Macroeconomic Policy
What are Macroeconomic Policy Tools?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What are the Tools for Macroeconomic Policy?
National governments have two tools for influencing the macroeconomy. The first is monetary policy, which involves managing the money supply and interest rates.
The second is fiscal policy, which involves changes in government spending/purchases and taxes.
Related Topics
- Macroeconomics
- Macroeconomic Frameworks
- Macroeconomic Policy Tools
- Productivity Economics
- One-Third Rule
- Gross Domestic Product (GDP)
- Durable and Non-Durable Goods
- Weightless Economy
- Intermediate and Final Goods or Services
- Nominal GDP
- Converting Nominal to Real GDP
- GDP Inflator
- Nominal GDP Price Index
- Measuring GDP
- Gross National Product
- Net National Product
- Factor Income
- Gross National Income
- Expenditure Method
- The Problem of Double Counting GDP
- Double Counting
- Why is Tracking Real GDP Important?
- Convert Currencies with Exchange Rates
- Convert GDP to a Common Currency
- Per Capita GDP
- GDP Per Capita
- GDP as a Measure of Society Well-Being
- Limitations of GDP as a Measure of the Standard of Living