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10. Government macroeconomic intervention

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  1. 10.1 Government macroeconomic policy objectives

    1. • Objectives in terms of inflation, balance of payments, unemployment, growth, development, sustainability and redistribution of income and wealth

  2. 10.2 Links between macroeconomic problems and their interrelatedness

    1. • Relationship between the internal value of money and the external value of money

    2. • Relationship between the balance of payments and inflation

    3. • Relationship between growth and inflation

    4. • Relationship between growth and the balance of payments

    5. • Relationship between inflation and unemployment: - traditional Phillips curve - expectations-augmented Phillips curve (short- and long-run Phillips curve)

  3. 10.3 Effectiveness of policy options to meet all macroeconomic objectives

    1. 10.3.1Policy effectiveness

      • Effectiveness of different policies in relation to different macroeconomic objectives: - fiscal policy including Laffer curve analysis - monetary policy - supply-side policy including market-based and interventionist policies - exchange rate policy - international trade policy

    2. 10.3.2Policy problems/conflicts

      • Problems and conflicts arising from the outcome of these policies

    3. 10.3.3Macroeconomic government failure

      • Existence of government failure in macroeconomic policies