Institutional Factors in Economic Policy Change: a Case of Germany and U.K - Research Paper Example

Download file to see previous pages... Political neutrality is perceived as the best practice in determining the independence and reliability of the financial and fiscal decisions by the United Kingdom. This is because the fiscal critical policies formulated will at the interest of economic stability. However, politics influences the economic policies by changing the monetary and fiscal policies in order to attain personal or politicized outcomes aimed at reining the state. These adversely affect the economic and financial performance of the country.
Research Questions and Objectives of the study
The general objective of this study is to determine the influence of partisanship and politics on the economic performance.
More specific, the study aims at;
 Establishing the relationship between partisanship and economic performance
 Determining the differences between partisanship in Germany and United Kingdom
 Determining the degree to which partisanship and politics impacts on monetary and fiscal policies
This research seeks to answer the following questions;
 Is there a positive relationship between economic performance of U.K/Germany and partisanship?
 Are the partisanship of Germany and U.K different?
 Is partisanship and politics essential in enactment and implementation of monetary and fiscal policies of these two countries?
Research assumptions/hypothesis
 Economic performance and partisanship have a strong positive relationship.
 There is no significant difference between partisanship in Germany and U.K.
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These adversely affect the economic and financial performance of the country. Research Questions and Objectives of the study The general objective of this study is to determine the influence of partisanship and politics on the economic performance. More specific, the study aims at; Establishing the relationship between partisanship and economic performance Determining the differences between partisanship in Germany and United Kingdom Determining the degree to which partisanship and politics impacts on monetary and fiscal policies This research seeks to answer the following questions; Is there a positive relationship between economic performance of U.K/Germany and partisanship? Are the partisanship of Germany and U.K different? Is partisanship and politics essential in enactment and implementation of monetary and fiscal policies of these two countries? Research assumptions/hypothesis Economic performance and partisanship have a strong positive relationship. There is no significant difference between partisanship in Germany and U.K. Partisanship influences the monetary and fiscal policies right from enactment to implementation stage. LITERATURE REVIEW The government of the United Kingdom has introduced fundamental steps aimed at strengthening their fiscal and monetary policy. Fiscal policies of the U.K. are firmly directed towards achieving sound monetary and financial policies for both long-term and short-term economic cycles. Fiscal and monetary policies of the United Kingdom provide policy frameworks and platforms for economic stability, economic growth, balance payment accounts, and creation of sustainable employment policy (Schmidt, 2006, p.78-9). Quality internal and external scrutiny of fiscal and monetary policies is significant in achieving ...Download file to see next pagesRead More