Who Makes UK Economic Policy

Economic policy in the UK Is made by a number of bodies both at home and abroad. There are some actors who directly make economic policy- for example the chancellor, and there are thhose who just influence the making of economic policy- for example pressure groups. Some of these actors are domestic actors and some […]

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A nation’s choice as to which exchange rate regime to follow reflects their priorities about the economy such as inflation, unemployment, Interest rate level etc. Countries may adopt toa different ER regime over time as priorities change. If the Ideal currency existed In todays world, It would possess three attributes: exchange rate stability, full flnanclal […]

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Monetary policy

Fiscal policy refers to the federal government’s efforts to keep the economy stable by increasing or decreasing taxes or government spending. The first fiscal policy tool is taxation. High tax rates tend to slow the economy because they draw money away from the private sector and put it into the government. High tax rates may […]

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Monetary Policy and Its Effect on Macroeconomic Factors

The extremely large number of money exchanges that occurs each day all over the world form a highly complex web that is very resistant to analysis. However, it must be understood that the basis rules of money creation that govern these exchanges are readily understood and very simple. How money works is a little complex, […]

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Recent Direction of Monetary Policy

The Federal Reserve’s recent monetary policy is towards keeping the overall economy on an adjustment path where growth is moderate and sustainable. As Federal Reserve Chairman Ben Bernanke mentioned in his Testimony Before the Committee on Financial Services, U. S. House of Representatives on July 18, 2007: “At each of its four meetings so far […]

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