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10. Government macroeconomic intervention

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  1. 10.1 Government macroeconomic policy objectives

    1. 10.1.1

      • 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. 10.2.1Internal and external money value

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

    2. 10.2.2Balance of payments and inflation

      • Relationship between the balance of payments and inflation

    3. 10.2.3Growth and inflation

      • Relationship between growth and inflation

    4. 10.2.4Growth and balance of payments

      • Relationship between growth and the balance of payments

    5. 10.2.5Inflation and unemployment

      • 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