Fiscal And Monetary Policy

Last updated Jul 4, 2023 Edit

• Business

• The use of government spending, taxation and borrowing to achieve relevant economic objectives

• Income tax
• Corporation tax
• VAT

• Health
• Education
• Social Security

• Budget deficit

• The use of interest rates and changes to the money supply to achieve relevant economic objectives

• The Bank of England (Monetary Policy Committee)
• Their main aim is to try and keep inflation around 2%
• Look to support stability and economic growth

• The opposite of free/open trade
• The main aim is to protect domestic businesses and industries from any overseas competition and prevent the outcome resulting solely from open trade

• A tariff or tax/duty that raises the price of imported products
• An attempt to reduce the domestic demand for the specific imported products
• Intended to allow domestic suppliers to scale up

• Limits on the quantity of imports allowed or a limit to the value of imports permitted into a country over a specific time frame

• Other regulations such as labelling requirements or quality standards
• They are administrative, technical and regulatory obstacles to trade

• Payments to encourage domestic production by lowering their costs

• Domestic subsidies involve government help or state aid for domestic businesses facing financial problems

Business