# economic policy > actions that governments take in the economic field **Wikidata**: [Q582577](https://www.wikidata.org/wiki/Q582577) **Wikipedia**: [English](https://en.wikipedia.org/wiki/Economic_policy) **Source**: https://4ort.xyz/entity/economic-policy ## Summary Economic policy consists of actions that governments take in the economic field to influence and manage economic conditions. It encompasses various strategies including fiscal policy, monetary policy, and industrial policy to achieve objectives like price stability, full employment, and economic growth. ## Key Facts - Economic policy is a subclass of public policy and part of politics - Includes fiscal policy, monetary policy, agricultural policy, industrial policy, and commercial policy - Economic policy is used to influence the economy through government revenue collection and spending - Monetary policy is a subclass of economic policy - Fiscal policy uses government revenue collection and spending to influence the economy - Agricultural policy involves laws relating to domestic agriculture and imports of foreign agricultural products - Industrial policy is a national strategic effort to encourage the development and growth of all or part of the economy - Commercial policy governs international trade - Natural resource management is part of economic policy - Competition law promotes market competition by regulating anti-competitive conduct - Labor market policy deals with employment and workforce issues - Domestic policy concerns issues within a country - Land-use planning regulates the use of land by a central authority - Macroeconomic policy focuses on limiting the effects of the business cycle to achieve economic goals - Stimulus attempts to use monetary or fiscal policy to stimulate the economy - Austerity aims to reduce government budget deficits through spending cuts or tax increases - Incomes policy involves economy-wide wage and price controls - Laissez faire advocates for abstention by governments from interfering in the workings of the free market - Trade barriers restrict trade by a government - Price support provides subsidies or price controls to increase market prices - Redistribution of wealth transfers income and wealth from some individuals to others - Beggar thy neighbor is an economic improvement attempt that causes worse conditions for other countries - Five-year plans of the Soviet Union were Communist economic plans in the former Soviet Union - New Economic Mechanism involved economic reforms in Hungary in 1968 and Laos in 1986 - Five-year plans of India were economic policies of India - Five-year plans of China are Communist economic plans in the People's Republic of China (1953 to present) - New Deal included economic programs of U.S. president Franklin D. Roosevelt - Poverty reduction involves measures to reduce poverty permanently - Discretionary policy is economic policy of macroeconomics - Procyclical economic policy follows economic cycles - Debt moratorium delays payment of debts, usually by government - Reflation returns prices to a previous rate of inflation - Budgetary policy deals with revenue and expenditure of public budgets - Tripartism is economic corporatism based on tripartite contracts of business, labour, and state affiliations - Neomercantilism is an economic policy - Job guarantee is an economic policy proposal for full employment - Mercantilism is an early economic theory - Free silver was an economic policy issue in the United States from April 1, 1873 to December 23, 1913 - American School was a historical macroeconomic policy in the United States - New Economic Policy was an economic policy of Soviet Russia proposed by Vladimir Lenin - Nordic model represents economic and social policies common to the Nordic countries - Economic progressivism is a political and economic philosophy - Arbitrism was political and economic thinking in the Hispanic Monarchy (XVI and XVII centuries) - Reaganomics promoted economic policies by Republican U.S. President Ronald Reagan - Abenomics implemented economic policies in Japan named after Shinzo Abe - Four Year Plan initiated economic measures by Adolf Hitler - Austral plan was an economic plan in Argentina (1985-1992) - 500 Days was a 1990 Soviet economic plan - New Economic System (NES) was an East German economic policy - Great Break represented a radical change in the economic policy of the Soviet Union in 1928/1929 - Hindenburg Programme covered German armaments and economic policy in World War I - fukoku kyōhei was a Japanese national slogan - Household responsibility system is a practice in China for holding households responsible for enterprise profits and losses - Renewable energy commercialization deploys technologies harnessing easily replenished natural resources - Fiscal localism involves institutions of localized monetary exchange ## FAQs ### What is economic policy? Economic policy consists of actions that governments take in the economic field to influence and manage economic conditions. It encompasses various strategies including fiscal policy, monetary policy, and industrial policy to achieve objectives like price stability, full employment, and economic growth. ### What types of policies are included under economic policy? Economic policy includes fiscal policy, monetary policy, agricultural policy, industrial policy, commercial policy, natural resource management, competition law, labor market policy, domestic policy, land-use planning, and macroeconomic policy among others. These policies work together to shape economic outcomes and address various economic challenges. ### What are some historical examples of economic policy? Historical examples include the New Deal economic programs of U.S. president Franklin D. Roosevelt, five-year plans of the Soviet Union, five-year plans of India and China, mercantilism as an early economic theory, and the New Economic Policy proposed by Vladimir Lenin. These policies have shaped economic systems and influenced national development strategies. ### How does economic policy relate to other fields? Economic policy intersects with politics, public policy, and various academic disciplines including political science, economics, and sociology. It connects to areas like monetary policy, fiscal policy, and industrial policy, forming an interconnected system of governance approaches. ### What are some modern implementations of economic policy? Modern implementations include Reaganomics promoted by Republican U.S. President Ronald Reagan, Abenomics in Japan named after Shinzo Abe, austerity measures to reduce government budget deficits, stimulus packages to stimulate economies, and the Nordic model representing economic and social policies common to Nordic countries. ## Why It Matters Economic policy plays a crucial role in shaping the economic landscape of nations and influencing global markets. It determines how governments manage resources, taxation, spending, and regulation to achieve desired economic outcomes such as growth, stability, and employment. The decisions made through economic policy directly impact citizens' livelihoods, business operations, and international competitiveness. Effective economic policy can lead to prosperity and stability, while poor policy choices can result in recessions, unemployment, and social unrest. Understanding economic policy is essential for comprehending how governments address economic challenges and opportunities, making it fundamental to understanding modern governance and international relations. ## Notable For - Comprehensive coverage of economic activities from fiscal and monetary policy to industrial and agricultural strategies - Integration with political systems and governance structures worldwide - Historical significance through major policy implementations like the New Deal and Soviet five-year plans - Diverse approaches including laissez faire, interventionist, and mixed economy models - Influence on international trade through commercial policy and trade barriers - Adaptation to modern challenges like climate change and digital economies - Role in addressing inequality through redistribution of wealth and poverty reduction measures - Impact on employment through labor market policies and job guarantee proposals - Connection to broader social policies affecting welfare and social services - Evolution from classical economic theories to contemporary policy frameworks ## Body ### Definition and Scope Economic policy consists of actions that governments take in the economic field to influence and manage economic conditions. This encompasses various strategies including fiscal policy, monetary policy, and industrial policy to achieve objectives like price stability, full employment, and economic growth. The policy area is a subclass of public policy and part of the broader field of politics, connecting to governance, policy-making, and the exercise of power within organized groups. ### Types of Economic Policies Fiscal policy uses government revenue collection and spending to influence the economy, while monetary policy is a subclass of economic policy that deals with money supply and interest rates. Agricultural policy involves laws relating to domestic agriculture and imports of foreign agricultural products, and industrial policy is a national strategic effort to encourage the development and growth of all or part of the economy. Commercial policy governs international trade, while natural resource management addresses environmental and resource allocation issues. ### Regulatory Components Competition law promotes market competition by regulating anti-competitive conduct by companies, ensuring fair market conditions. Labor market policy deals with employment and workforce issues, while domestic policy concerns issues within a country. Land-use planning regulates the use of land by a central authority, and macroeconomic policy focuses on limiting the effects of the business cycle to achieve economic goals of price stability, full employment, and growth. ### Intervention Strategies Stimulus attempts to use monetary or fiscal policy to stimulate the economy during downturns, while austerity aims to reduce government budget deficits through spending cuts or tax increases. Incomes policy involves economy-wide wage and price controls, and laissez faire advocates for abstention by governments from interfering in the workings of the free market. Trade barriers restrict trade by a government, while price support provides subsidies or price controls to increase market prices above competitive equilibrium levels. ### Historical Implementations The New Deal included economic programs of U.S. president Franklin D. Roosevelt, representing a significant shift in American economic policy during the Great Depression. Five-year plans of the Soviet Union were Communist economic plans in the former Soviet Union, while five-year plans of India and China represent long-term economic planning approaches. The New Economic Policy was an economic policy of Soviet Russia proposed by Vladimir Lenin, describing a progression towards "state capitalism" within the workers' state of the USSR. ### Modern Approaches Reaganomics promoted economic policies by Republican U.S. President Ronald Reagan, emphasizing tax reduction and deregulation. Abenomics implemented economic policies in Japan named after Shinzo Abe, focusing on monetary easing and structural reforms. The Nordic model represents economic and social policies common to the Nordic countries, combining a comprehensive welfare state with collective bargaining at the national level while maintaining free market capitalism foundations. ### Contemporary Challenges Poverty reduction involves measures to reduce poverty permanently, while redistribution of wealth transfers income and wealth from some individuals to others. Debt moratorium delays payment of debts, usually by government, during economic crises. Reflation returns prices to a previous rate of inflation, and budgetary policy deals with revenue and expenditure of public budgets. Procyclical economic policy follows economic cycles rather than counteracting them. ### Economic Theories and Systems Mercantilism represents an early economic theory focused on accumulating precious metals and favorable trade balances. Free silver was an economic policy issue in the United States from April 1, 1873 to December 23, 1913, advocating for silver coinage alongside gold. The American School was a historical macroeconomic policy in the United States emphasizing protectionism and internal improvements. Arbitrism was political and economic thinking in the Hispanic Monarchy during the XVI and XVII centuries. ### Corporate and Social Models Tripartism is economic corporatism based on tripartite contracts of business, labour, and state affiliations within the economy, creating collaborative decision-making structures. Neomercantilism represents a modern form of economic policy emphasizing state involvement in economic development. Job guarantee is an economic policy proposal for full employment in which the state hires unemployed workers as an employer of last resort, addressing unemployment through direct government intervention. ### Regional and National Variations The Australian plan was an economic plan in Argentina from 1985-1992, demonstrating how economic policies vary by region and context. The 500 Days was a 1990 Soviet economic plan showing how different political systems develop distinct economic approaches. The New Economic System (NES) was an East German economic policy, while the Great Break represented a radical change in the economic policy of the Soviet Union in 1928/1929. The Four Year Plan initiated economic measures by Adolf Hitler, demonstrating how economic policy can serve political objectives. ### Cultural and Philosophical Elements Fukoku kyōhei was a Japanese national slogan representing economic strengthening concepts. The household responsibility system is a practice in China, first adopted in agriculture in 1979 and officially established in 1982, by which households are held responsible for the profits and losses of an enterprise. Renewable energy commercialization deploys technologies harnessing easily replenished natural resources, showing how economic policy adapts to environmental concerns. Fiscal localism involves institutions of localized monetary exchange, representing decentralized economic approaches. ## References 1. [Nuovo soggettario](https://thes.bncf.firenze.sbn.it/termine.php?id=6651) 2. Nuovo soggettario 3. Freebase Data Dumps. 2013 4. [Registros de autoridad de "Materia" de la Biblioteca Nacional de España. Spain open data portal](https://www.bne.es/media/datosgob/catalogo-autoridades/materia/materia-UTF8.zip) 5. BBC Things 6. YSO-Wikidata mapping project 7. BabelNet 8. Quora 9. National Library of Israel Names and Subjects Authority File 10. KBpedia 11. [OpenAlex](https://docs.openalex.org/download-snapshot/snapshot-data-format)