Economic policy refers to the actions and strategies implemented by a government or central authority to influence its economy. This includes decisions related to taxation, government spending, regulation, monetary policy, and trade. The primary goals of economic policy are to promote economic growth, maintain stable prices, achieve full employment, and address issues such as income inequality and economic stability.
Economic policies can be categorized broadly into two types: fiscal policy, which deals with government spending and taxation decisions, and monetary policy, which focuses on the management of the money supply and interest rates by a country’s central bank. Policymakers use various tools and measures to implement economic policies, and these decisions can have significant impacts on business environments, consumer behavior, and national economic health.
The effectiveness of economic policy is often evaluated based on its outcomes in terms of economic performance indicators such as GDP growth, inflation rates, unemployment levels, and balance of trade. Overall, economic policy plays a crucial role in shaping a nation’s economic landscape and its ability to respond to domestic and global challenges.
Joyobank adopts a cautious strategy amidst potential interest rate hikes, prioritizing vigilance in domestic bond investments. Executive Director Bird Yoshitsugu highlights the potential allure of government bonds if interest rates…