1618:) results from the narrowly construed notion of intervention, which encompasses only policy decisions concerned with policymaking aimed at modifying causes to influence effects. In contrast to this idealized view of evidence-based policy movement, economic policymaking is a broader term that includes also institutional reforms and actions that do not require causal claims to be neutral under interventions. Such policy decisions can be grounded in, respectively, mechanistic evidence and correlational (econometric) studies.
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Government and central banks are limited in the number of goals they can achieve in the short term. For instance, there may be pressure on the government to reduce inflation, reduce unemployment, and reduce interest rates while maintaining currency stability. If all of these are selected as goals for
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is oriented towards all types of decisions concerned not only with anti-cyclical development but primarily with the growth-promoting policies. To gather evidence for such decisions, economists conduct randomized field experiments. The work of
Banerjee, Duflo, and Kremer, the 2019 Nobel Prize
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A recent trend originating from medicine is to justify economic policy decisions with best available evidence. While the previous approaches have been focused on macroeconomic policymaking aimed at sustaining promoting economic development and counteracting recessions,
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that advised limiting the role of government in the economy in the second half of the twentieth century, the interventionist view has once more dominated the economic policy debate in response to the 2007-2008 financial crisis,
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the short term, then policy is likely to be incoherent, because a normal consequence of reducing inflation and maintaining currency stability is increasing unemployment and increasing interest rates.
1386:: a government may say it intends to raise interest rates indefinitely to bring inflation under control, but then relax its stance later. This makes policy non-credible and ultimately ineffective.
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Another type of non-discretionary policy is a set of policies that are imposed by an international body. This can occur (for example) as a result of intervention by the
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controls the value of currency by lowering the supply of money to control inflation and raising it to stimulate economic growth. It is concerned with the amount of
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Plosila, Walter (May 2004). "State
Science- and Technology-Based Economic Development Policy: History, Trends and Developments, and Future Directions".
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laureates exemplifies the gold type of evidence. However, the emphasis put on experimental evidence by the movement of evidence-based policy (and
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A compromise between strict discretionary and strict rule-based policy is to grant discretionary power to an independent body. For instance, the
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A discretionary policy is supported because it allows policymakers to respond quickly to events. However, discretionary policy can be subject to
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A rule-based policy can be more credible, because it is more transparent and easier to anticipate. Examples of rule-based policies are fixed
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Almost every aspect of government has an important economic component. A few examples of the kinds of economic policies that exist include:
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were in supply in different proportions. Which metal was adopted influenced the wealth of different groups in society.
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policy to help adjust markets. For instance, unemployment could potentially be reduced by altering laws relating to
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The
Philosophy of Causality in Economics: Causal Inferences and Policy Proposals
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all set interest rates without government interference, but do not adopt rules.
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Advice and
Dissent: Why America Suffers When Economics and Politics Collide
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Such policies are often influenced by international institutions like the
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attempts to stimulate an economy out of recession or constrain the
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Friedman, Milton (1982). "Monetary Policy: Theory and
Practice".
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for their economic resources. However, with the development of
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Macroeconomic stabilization policy, which attempts to keep the
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The same markets made it easy for private entities to raise
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This dilemma can in part be resolved by using microeconomic
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Evidence-Based Policy: A Practical Guide to Doing It Better
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that aim at imposing non-monetary controls on inflation
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actions regarding the money supply and interest rates.
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and the international institutions that govern them.
1740:Screpanti, Ernesto; Zamagni, Stefano (2005-05-26).
1315:regulations, and many other aspects of government.
60:. Unsourced material may be challenged and removed.
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Actions that governments take in the economic field
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1356:For much of the 20th century, governments adopted
1193:Fiscal stance: The size of the deficit or surplus
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1767:Cartwright, Nancy; Hardie, Jeremy (2012-09-27).
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1545:without debasing their coin. The development of
1163:and technology-based economic development policy
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1514:and other restrictive trade practices like the
1449:The first economic problem was how to gain the
1199:: The taxes used to collect government income.
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1743:An Outline of the History of Economic Thought
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1031:covers the systems for setting levels of
120:Learn how and when to remove this message
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1375:, policymakers began to be attracted to
1291:To achieve these goals, governments use
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1468:Early governments generally relied on
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1461:and other projects like building the
1699:Journal of Money, Credit and Banking
1495:. Some early civilizations, such as
1352:Discretionary policy vs policy rules
1205:on just about any area of government
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1831:. London & New York: Routledge.
1273:. Sometimes other objectives, like
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1439:Economic policy through history
1348:) factors like interest rates.
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1794:Wearden, Graeme (2019-10-14).
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1525:became an important issue.
1433:International Monetary Fund
1083:International Monetary Fund
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1231:, if set by the Government
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1827:Maziarz, Mariusz (2020).
1426:Reserve Bank of Australia
1399:stability and growth pact
1319:Selecting tools and goals
2176:Public policy by country
1846:Alan S. Blinder (2018).
1649:Constitutional economics
1373:stagflation of the 1970s
1364:designed to correct the
1097:Types of economic policy
241:JEL classification codes
1616:evidence-based medicine
1537:The first fiscal policy
1407:Exchange Rate Mechanism
1371:However, following the
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284:Computational economics
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1501:closed currency policy
1358:discretionary policies
1342:unemployment insurance
279:Experimental economics
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1597:neoclassical thought
1484:and so increase the
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1173:Stabilization policy
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54:improve this article
1395:interest rate rules
1203:Government spending
1188:Keynesian economics
1074:, which deals with
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274:National accounting
1523:monetary standards
1507:on foreign trade.
1482:debase the coinage
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1297:interest rate
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1184:Fiscal policy
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1069:
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1064:fiscal policy
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1049:labour market
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574:de Mandeville
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502:Public choice
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477:Participation
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437:Institutional
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377:Environmental
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207:International
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183:Branches and
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110:December 2007
102:
99:
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85:
81:
78:
74:
71: –
70:
66:
65:Find sources:
59:
55:
49:
48:
43:This article
41:
37:
32:
31:
19:
2124:Other topics
1943:
1910:Agricultural
1847:
1828:
1822:
1811:. Retrieved
1800:The Guardian
1799:
1789:
1769:
1762:
1742:
1735:
1702:
1698:
1692:
1683:
1679:
1673:
1607:
1574:
1558:
1551:
1540:
1520:
1512:mercantilism
1509:
1500:
1490:
1486:money supply
1474:forced labor
1472:in kind and
1467:
1448:
1430:
1411:
1388:
1381:
1377:policy rules
1370:
1355:
1338:trade unions
1331:
1322:
1313:labor market
1301:money supply
1293:policy tools
1292:
1290:
1286:policy goals
1285:
1283:
1267:unemployment
1260:
1177:money supply
1171:
1151:As well as:
1117:Trade policy
1107:money supply
1100:
1080:
1059:
1057:
1041:money supply
1022:
943:Publications
908:
531:Sociological
504: /
491:
402:Geographical
382:Evolutionary
357:Digitization
322:Agricultural
226:Mathematical
197:Econometrics
116:
107:
97:
90:
83:
76:
64:
52:Please help
47:verification
44:
2067:Immigration
2054:Vaccination
1403:Golden Rule
1346:demand-side
1334:supply-side
1089:as well as
1029:governments
779:von Neumann
432:Information
372:Engineering
352:Development
347:Demographic
289:Game theory
231:Methodology
2166:Regulation
2107:Technology
1971:Investment
1964:Industrial
1813:2020-04-07
1665:References
1593:monetarism
1499:adopted a
1197:Tax policy
1157:anti-trust
1153:regulatory
1087:World Bank
938:Economists
809:Schumacher
714:Schumpeter
684:von Wieser
604:von Thünen
565:economists
541:Statistics
536:Solidarity
457:Managerial
422:Humanistic
417:Historical
362:Ecological
327:Behavioral
221:Mainstream
80:newspapers
2093:Stem cell
2072:Knowledge
2000:Education
1808:0261-3077
1719:0022-2879
1451:resources
1263:inflation
1223:inflation
854:Greenspan
819:Samuelson
799:Galbraith
769:Tinbergen
709:von Mises
704:Heckscher
664:Edgeworth
482:Personnel
442:Knowledge
407:Happiness
397:Financial
367:Education
342:Democracy
236:Political
202:Heterodox
145:Economics
2191:Category
2082:Military
2077:Language
1978:Monetary
1944:Economic
1925:Domestic
1920:Cultural
1622:See also
1581:cyclical
1563:or sell
1543:deficits
1463:Pyramids
1455:military
1401:and the
1159:policy,
1155:policy,
1068:spending
1033:taxation
947:journals
933:Glossary
884:Stiglitz
849:Rothbard
829:Buchanan
814:Friedman
804:Koopmans
794:Leontief
774:Robinson
659:Marshall
563:Notable
511:Regional
487:Planning
462:Monetary
392:Feminist
337:Cultural
332:Business
137:a series
135:Part of
2087:Science
2062:Housing
2036:Foreign
1957:Incomes
1727:1991496
1121:tariffs
1025:economy
953:Schools
945: (
904:Piketty
899:Krugman
764:Kuznets
754:Kalecki
729:Polanyi
619:Cournot
614:Bastiat
599:Ricardo
589:Malthus
579:Quesnay
551:Welfare
521:Service
192:Applied
168:Outline
163:History
94:scholar
2115:Social
2041:Health
2005:Energy
1950:Fiscal
1936:reform
1903:Fields
1854:
1806:
1777:
1750:
1725:
1717:
1585:Keynes
1531:silver
1505:tariff
1397:, the
1039:, the
889:Thaler
869:Ostrom
864:Becker
859:Sowell
839:Baumol
744:Myrdal
739:Sraffa
734:Frisch
724:Knight
719:Keynes
694:Fisher
689:Veblen
674:Pareto
654:Menger
649:George
644:Jevons
639:Walras
629:Gossen
497:Public
492:Policy
447:Labour
412:Health
269:Market
96:
89:
82:
75:
67:
2100:Space
1992:Trade
1723:JSTOR
1565:stock
1561:bonds
1493:trade
1478:money
1459:roads
1360:like
1269:, or
1215:money
1070:, or
926:Lists
894:Hoppe
879:Lucas
844:Solow
834:Arrow
824:Simon
789:Lange
784:Hicks
759:Röpke
749:Hayek
699:Pigou
669:Clark
584:Smith
546:Urban
526:Socio
516:Rural
216:Macro
212:Micro
173:Index
101:JSTOR
87:books
2031:Food
1930:Drug
1852:ISBN
1804:ISSN
1775:ISBN
1748:ISBN
1715:ISSN
1595:and
1575:The
1529:and
1527:Gold
1424:and
1299:and
1237:and
1221:and
1043:and
1023:The
910:more
634:Marx
624:Mill
609:List
73:news
1985:Tax
1707:doi
1611:EBP
1488:.
1470:tax
1379:.
1340:or
1305:tax
1277:or
1085:or
1027:of
874:Sen
594:Say
452:Law
56:by
2193::
1802:.
1798:.
1721:.
1713:.
1703:14
1701:.
1684:18
1682:.
1556:.
1465:.
1457:,
1435:.
1420:,
1416:,
1393:,
1311:,
1303:,
1265:,
1225:.
1123:,
1051:,
1035:,
214:/
139:on
1888:e
1881:t
1874:v
1860:.
1816:.
1783:.
1756:.
1729:.
1709::
1113:.
1012:e
1005:t
998:v
949:)
123:)
117:(
112:)
108:(
98:·
91:·
84:·
77:·
50:.
20:)
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