Fiscal and Monetary Policies
The four ultimate objectives of macro-economic policy based on fiscal and monetary policies are (1) economic growth, (2) the securing of employment, (3) price stability and (4) the equilibrium of international balance of payments. The balanced attainment of these goals enables a country to achieve sustained economic development. Under a market economy, the distribution of funds through the economy as a whole is essentially left to the financial and capital markets. However, in order to maintain stable macro-economic conditions, the government must play a role that complements market mechanisms. For this reason, the boundary between the public and private sectors has continually shifted in accordance with the level of economic development and the internal and external economic environment.
KeywordsMonetary Policy Central Bank Fiscal Policy Money Supply Money Demand
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Literature to 8.1
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