Governmental Economic Policies

Definition

Governmental economic policies refer to actions taken by governments to manage and regulate their country's economy. These policies include fiscal policies (taxation and government spending) and monetary policies (controlling interest rates and money supply).

Related terms

Fiscal Policy: This term refers specifically to government decisions regarding taxation and spending in order to influence an economy's performance.

Monetary Policy: Policies implemented by central banks or monetary authorities that aim to regulate money supply, interest rates, and credit conditions.

Keynesian Economics: An economic theory advocating for increased government spending during times of recession or depression as a means of stimulating the economy.