Government economic policy refers to actions taken by governments to influence or regulate their country's economy. It includes decisions relating to taxation, spending, monetary policy, trade regulations, and more.
Related terms
Fiscal Policy: Refers to government decisions regarding taxation and spending with the aim of influencing the overall state of the economy.
Monetary Policy: Involves controlling the supply of money and interest rates as tools for managing inflation levels and promoting economic growth.
Trade Policy: Policies governing international trade relationships such as tariffs (taxes on imports/exports) or free trade agreements that impact domestic industries' competitiveness.