Economic Policy

Economic policy is the set of government actions setting levels of taxation, government budgets, the money supply and interest rates, regulation of the labour market and other actions that can affect the economy. The cited article calls it a broad term for both the goals governments pursue and the tools they use, and says most instruments divide into fiscal policy, which deals with government revenue and expenditure decisions, or monetary policy, which deals with central banking actions regarding the money supply and interest rates. It adds that governments also shape economies through industrial policy, regulatory frameworks, redistribution through taxes and transfers, and trade policy. Policies grouped under this entry are those aimed at the economy.