Scrub Ya Flaps
Member
- Joined
- Oct 24, 2009
- Messages
- 68
- Gender
- Undisclosed
- HSC
- 2009
Thank-you very much. I did know that it just likes getting mixed up. The main things, more than that however, is structural reform. I know SOME structural reform, e.g. labour reform (thats about it i will look it more tonight and tomoz) but the thing is i don't get how it comes about. It comes from Microeconomic policies but how are they enacted? Does the gov't plan and spend money? If so wouldn't that be Fiscal policy.To put it flat - Macroeconomic policies deal with aggregate demand, Fiscal policy involves the government spending and taxing (that is increasing AD and 'reducing' AD). Monetary policy is a macro-economic policy aswell and so it also deals with demand, by lowering interest rates people lend more money - thus investment and consumption increases and in the same way an increase in interest rates will less people borrowing and spending and just focus on paying their loans and financial obligations. (this is generalising to contrast these policies)
Now we look at Microeconomic policies - namely Structural reform, these policies are used to increase efficiency and hence they work by enhancing aggregate supply. In the short term this can see a small increase in unemployment, we usually see short term costs with long term benefits.
making sense or do you need more detail?
SORRY, i dont even know what my question is now... but i guess it's something about how they are enacted or used, because wouldnt that be counted in Fiscal policy and if so is fiscal both Micro and Macro policy. I will try and find this out but i find this forum extremely useful even when noone responds haha. TYVM for your last response though