U.s. Department Of State Essay

1639 Words Nov 2nd, 2015 null Page
Every government in the world has a goal to its citizens and itself to be economically competitive. The government applies policies and practices, checks and balances, all with a goal of keeping the economy steady and stable. Each government uniquely applies policies it considers best but the desired result is similar for all, a stable economy. To keep the economy steady and non-volatile, the government seeks to achieve price stability and continuous economic growth. The nation’s policy makers carefully consider the business patterns in the country and come up with policies to achieve a stable and steady growth which is sustainable and also help reduce possible negative impact that may result from economic downturns and policy failure (U.S. Department of State). There are two major categories of policies that governments make. These are fiscal policies and monetary policies. Fiscal policies are policies that governments make in relation to its spending and taxation. Fiscal policies are useful in stabilizing the business cycle. They help slow down out of control growth, help in economic free fall and also in speeding up economic recovery. Monetary policies on the other hand are policies carried out by central banks in order to influence money supply in the economy. It usually involves changing the interest rates (Holtham, Hooper and Symansky). The United States government also uses such policies in order to maintain a stable and a growing economy. Prize stability is key to…

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