Economy

    What is 'Macroeconomic policy'


    Definition: The set of government rules and regulations to control or stimulate the aggregate indicators of an economy frames the macroeconomic policy. Aggregate indicators involve national income, money supply, inflation, unemployment rate, growth rate, interest rate and many more. In short, policies framed to meet the macro goals.

    Description: Two main regulatory macroeconomic policies are fiscal policy and monetary policy. Fiscal policy is the macroeconomic policy where the government makes changes in government spending or tax to stimulate growth. Monetary policy deals with changes in money supply or changes with the parameters that affects the supply of money in the economy.

    Contract laws, debt management policy, income policy are some of the other macroeconomic policies designed to modify macroeconomic indicators of the economy.

    Related News

    • China's central bank vows to support economic recoveryChina's central bank said on Friday it will ensure reasonably ample liquidity and credit expansion to consolidate the country's economic recovery, which still faces many challenges.
    • After GoI’s turn at the interim budget, it’s now RBI’s turn to do its bit to tackle inflationNirmala Sitharaman stuck to her pre-budget statement that this being a 'vote on account', there will not be any 'spectacular budget announcements'. That did not prevent her from using the opportunity to drum home the point that 'the Indian economy has witnessed profound positive transformation in the last ten years,' coinciding with the BJP government's term.
    • Near-term markets may be range-bound or slightly down: Rahul ChadhaRahul Chadha says: "In broad consumption space, things are looking soft. In the last three-six months, we have seen all the tightness happening on the unsecured lending also. So, we will see some pressure. But within a long structural cycle, there will be mini cycles which will give good entry points for long-term investors. We want the dips and some bit of a softness so that valuations correct and you can deploy long-term money."
    • RBI appoints Muneesh Kapur as new Executive DirectorOver a span of nearly three decades in the RBI, Kapur has worked in areas of macroeconomic policy and research and monetary policy in the Department of Economic and Policy Research and Monetary Policy Department. He also served as adviser to executive director, International Monetary Fund, during 2012-15, the statement added.
    • China faces new challenges, recovery will be tortuous: Communist Party's PolitburoChina will step up macroeconomic policy adjustments and focus on expanding domestic demand, the ruling Chinese Communist Party's top decision-making body Politburo said. Top leaders have pledged to intensify macroeconomic policy adjustments, focus on expanding domestic demand, boosting confidence and preventing risks, and continuously promote the improvement of economic operations
    • India asks IMF, FSB to prepare technical paper on regulating cryptoIndia hopes to broaden the G20 discussion on crypto assets beyond financial integrity concerns and capture the macroeconomic implications and widespread crypto adoption in the economy, it said, adding, this will require a data-based and informed approach to the global challenges and opportunities of crypto assets, allowing G20 members to shape a coordinated and comprehensive policy response.
    • India asks IMF, FSB to prepare technical paper on regulating cryptoIndia hopes to broaden the G20 discussion on crypto assets beyond financial integrity concerns and capture the macroeconomic implications and widespread crypto adoption in the economy, it said, adding, this will require a data-based and informed approach to the global challenges and opportunities of crypto assets, allowing G20 members to shape a coordinated and comprehensive policy response.
    • Axis Bank CEO Amitabh Chaudhry's six-point guide on how to build a robust credit ecosystemThe growth impact of these macro policies can be further reinforced by sector- and segment-specific measures. Facilitating a robust credit ecosystem for financing these ambitious initiatives remains a key ask. MSMEs have emerged as a key segment both for sustaining growth and as a pool for absorbing bank credit.
    • China looks to ease monetary policy to help smaller firmsChina will continue to implement a prudent monetary policy, keep liquidity reasonably ample, make policies based on the needs of market entities, and will cut the reserve requirement ratio at an appropriate time, Li said in a Friday meeting with International Monetary Fund head Kristalina Georgieva.
    • India's GDP seen rising 7.2% in 2018, 7.4% in 2019: UN reportOn India, the report has projected a positive outlook despite the slowdown early this year and the lingering effects of demonetisation.
    Load More
    The Economic Times