Policy Mix (1 Viewer)

[philzy]

What does it mean by a policy mix and selecting an appropriate policy mix to address a specific economic problem.

 

[bling05]

a policy mix is when a combination of micro + macro policies are used to address a certain economic problem. eg. inflation is being targetted through monetary policy (fiscal) whilst there is also reform into the labour market to increase productivity which by theory should reduce inflationary pressures

Nah, the policy mix is the combination of monetary and fiscal policy. For instance, the 2008-09 budget was supposed to "redefine" the policy mix by providing support for contractionary monetary policy (raising of interest rates) with a contractionary budget. Some argue however that the tax cuts delivered by the government have not redefined the policy mix at all, and is very expansionary, thereby putting more burden on monetary policy.

 

[lionking1191]

Nah, the policy mix is the combination of monetary and fiscal policy. For instance, the 2008-09 budget was supposed to "redefine" the policy mix by providing support for contractionary monetary policy (raising of interest rates) with a contractionary budget. Some argue however that the tax cuts delivered by the government have not redefined the policy mix at all, and is very expansionary, thereby putting more burden on monetary policy.

no.. policy mix means blend of macro and micro

fiscal and monetary is only macro

 

[runnable]

Policy Mix = all the policies available to government. ie, Macro AND Micro.