We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Macroeconomic Objectives of the UK Govenment Economic Policy - Assignment Example

Comments (0)
This paper reviews current macroeconomic policies of the UK government. The major objectives of macroeconomic policies are full employment, relatively stable prices, maintaining a satisfactory balance of payment position and high, but sustainable economic growth and development in the economy…
Download full paper
Macroeconomic Objectives of the UK Govenment Economic Policy
Read TextPreview

Extract of sample
Macroeconomic Objectives of the UK Govenment Economic Policy

Download file to see previous pages... This paper offers a comprehensive analysis of the framework of macroeconomic policies of the government of the UK. In order to exercise effective administration of the country the government must determine the objectives of its policy. Then the target has to be selected. The next task is to choose the instruments of policy to be used in pursuit of the objectives.
Four major economic objectives, that any government should pursue, include low unemployment level, price stability, satisfactory balance of payment position and sufficient sustainable economic growth. In addition to four major economic objectives a government may have other objectives for the economy. These may include a more even distribution income of wealth and a cleaner environment. It is difficult to achieve all four macro economic objectives at a time.
Countries rarely experience stable economic growth. Instead they experience business cycles. Periods of rapid economic growth are followed by periods of low growth or even a fall in output. Sometimes, these cycles can be the result of government policy of raising taxes in a recession in order to compensate for falling tax revenues caused by lower incomes and expenditures. Unemployment fluctuates with business cycles. High employment has a number of significant advantages. Most people receive higher incomes from employment than from state benefits. Governments usually not aim for complete price stability but for low and stable rate of inflation. The government also is to ensure balance of payment equilibrium.

New classical economist refers to the non-accelerating rate of unemployment ( NAIRU). It can also be called the natural rate of unemployment. It is the rate of unemployment which exists when all those who want to work at the going wage rate and who have the appropriate skills can find a job (Storm & Naastepad 2012). . Whether it is example four percent or 8 percent will depend on a number of factors. These include the gap between paid employment and state benefit, attitudes towards living on benefits, labor market information and skill levels. A government basing its policies on new classical theory would seek to reduce NAIRU by improving the working of the labor market ( Top of Form Fabiani 1998).  Bottom of Form . Furthermore, Governments usually not aim for complete price stability but for a low and stable rate of inflation. Complete price stability or zero inflation would mean that the general price level is not changing. In practice, in a dynamic, growing economy the general price the general price level is likely to rise by between 1% and 2% per year. This rise will reflect the buoyancy level of demand and the fact that the quality of goods tends to rise. For example, a television purchased in the year 2013 may be 5% more expensive than one purchased in 2012 but it may also, for instance, have extra channels and give better reception. If the rate of inflation is equal to or below rival countries, the countries can at least maintain its international price competitiveness. If it is stable then firms do not have to guess what wage claims they need to make to maintain their real wages. However, high and accelerating inflation is clearly undesirable. It can reduce a country’s international competitiveness, reduce the real income of some groups, create ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Macro-Economic Objectives and their Impact on Business Activity
Moreover, it would discuss the implications of these issues over the business environment. DISCUSSION Inflation, Unemployment and Economic Growth Inflation is defined as a rise in the general level of prices. By and large, inflation is measured by a number of indices, of which the most widely known and quoted is the retail price index (RPI).
6 Pages(1500 words)Assignment
Discipline of planning policy in the UK
The salient feature of the UK planning system consists in a paradox – being born and clearly rooted in local government practice (Cherry, 1988, p.72) during the late nineteenth and early twentieth centuries
9 Pages(2250 words)Assignment
UK Economic Indicators
Stock market traders are actually using fundamental analysis for the trade; keeping track of the values of key macroeconomic indicators. It is quite easy, as they are published in the strict time limit and they are actively discussing the situation at market.
16 Pages(4000 words)Assignment
National Economic Policy macroeconomic
available to them. In the policy mix, there would be expansionary monetary policy. Basically, this policy means that money supply will be increased. The policy makers will have to apply this policy to ensure that the money in supply   in the economy increases.
6 Pages(1500 words)Essay
Governments Various Macroeconomic Objectives and Their Importance to UK Economy
Macroeconomics and microeconomics vary in the scope of study, so macroeconomics covers the aggregate study of various units combined together, while the microeconomics handles a particular unit of an economy. In the overall economic phenomenon of macroeconomics, it handles issues of aggregate investment, consumption, savings and production.
10 Pages(2500 words)Assignment
Macroeconomic Policy Objectives
Macroeconomic Policy Objectives. All governments have aims and targets for their respective economies. These are referent to the aims and goals of the policy pursued by the government, which differ from macroeconomic instruments. They are the means for governments to achieve these macroeconomic aims.
7 Pages(1750 words)Essay
Assignment 2: The Fiscal and Monetary Policy and Economic Fluctuations
Monetary policy on the other side refers to actions that can be taken by the central bank to either slow or ignite the economy. Both Fiscal and monetary policies have a way of affecting the economy either positively or negatively. With reference to the
4 Pages(1000 words)Assignment
emerge as a result of some research being conducted and thus, help form empirical assumptions, which determine how the future of the practice will be conducted. Practice, on the other hand, is the actual process of proving or disapproving theoretical assumptions in the real
2 Pages(500 words)Assignment
Monetary Policy, Fiscal Policy, Business Cycles, and Economic Growth
Multinational corporations in Malawi will reduce their investments. Foreign Direct Investment stimulates economic growth and reduces the level of poverty. So a decrease in foreign direct
2 Pages(500 words)Assignment
Economic Policy and the Environment
An example in point has been Katrina hurricane that resulted from pollution from these processing industries. The damages were much of the result of
1 Pages(250 words)Assignment
Let us find you another Assignment on topic Macroeconomic Objectives of the UK Govenment Economic Policy for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us