Whats the difference between social policy and public policy?
1. Public policy is the more general term and can cover athe wide range of policy making about economic development ;environmental, arts; music. agriculture, industry, freedom of information, population, sustainalbility,etc 2. Social policy is more specfic but still covers a wide range otf issues. However, these are in the fields which relate more directly to social equality: health/education/welfare/social security/ crime and justice 3 The two areas can overlap especially in the fields of health and education
What is the difference between fiscal and monetary policy? How does fiscal and monetary policy affect national and global markets, and what are the changes that take place on a macro and microeconomic level?
Both monetary and fiscal policy are the tools that are used to influence the performance of an economy and achieve some desired results. However, they differ with the approach they take and in the way they function.Let us understand how.Monetary Policyis the policy to regulate and control money supply and credit in the economy.is carried out by the central bank of the country.makes use of tools such as bank rate, SLR, open market operations etc.functions include controlling financial institutions, influencing cost and availability of credit, controlling inflation and sale and purchase of paper assets.As an example, say, inflation target is of 4%. However, with the kind of economic growth that is happening, if inflation is expected to surpass this figure, central bank would increase the rate of interest to induce people to save more and spend less which would control the inflation rate.Fiscal Policyinvolves government changing tax rates and level of government spending to influence aggregate demand in the economy.is carried out by government of the economy.Main tools used are government spending and tax rate.primary functions include looking after stabilisation of economy, income distribution between different segments, development etc.Say, government is aiming to increase aggregate demand in the economy in regards to its target of higher economic growth. To do that, it’ll increase its spending or decrease tax rate so that demand in economy increases.
Which one is more effective in affecting the economy: the Fiscal Policy or the Monetary Policy?
Which one is more effective in affecting the economy: the Fiscal Policy or the Monetary Policy? Please let me know your opinion and tell me why you feel this way.
What effect did Keynesian economic theories have on the Roosevelt administration's New Deal economic policies?
Well at the time Keynes was becoming a very popular economist with his views on macroeconomic theory. However one must remember that FDR became president in 1933 and Keynes most significant book,The General Theory of Employment, Interest, and Money, wasn't published until 1936. So it would be hard to say that FDR was a "Keynesian" at the time he took office and started adopting New Deal fiscal policies. Most would argue that Keynes was simply the most elegant and most proficient at describing how the macroeconomic system could work. The concept of "pump primming" a national economy existed long before Keynes theory and his most famous book. Economics like all other social sciences are part of the big picture of social and economic change. No one scholar or one individual can be credited with all of the ideas that come about at any given time. FDR's policies were based upon more political exigency than any particular economic theory. It was the politics of involving the U.S. government to solve an economic crisis rather than trying to rely on economic theories of the time. One might even conclude that it was FDR's policies that had more influence on Keynes than the other way around. We can spend too much time discussing FDR's New Deal policies and we can compare those policies to macroeconomic theory of Keynes. However I think historians will note the differences in the time time lines of FDR and the general recognition of the works of John Maynard Keynes. One might say that Keynes's policies were more significant after WW2 than before.