Economic policy and its objectives

On the regulatory economy based economic policies, that is economic decision-making. Most often, this term implies, under the country's economic policy, or rather its government. In the economic policy of allocating separate directions, calling them the policies, such as monetary, taxation and fiscal, monetary, industrial policies, etc.

During the implementation of economic policies the country has a different purpose. For developed market economy is, above all, economic growth, full employment, low inflation, positive balance of payments, increasing economic efficiency, increase the welfare of the population, maintaining a high degree of economic freedom for all economic entities, maintaining and improving the natural environment and other purposes. In transition economies are added to the creation of private sector and market infrastructure, the liberalization of economic life, etc.

But the problem is that many of the goals of economic policies contradict each other. Thus, the active fight against inflation usually means a drop in economic growth and strengthening of unemployment. Therefore, depending on the situation priority objectives into economic policies may vary. Usually it depends on what becomes of them (could become) in "sore".