Discuss how far recent UK economic policy has been successful in achieving the macroeconomic objectives

The government implements an economic policy mix involving macroeconomic and microeconomic policy in order to achieve their objectives. The three main objectives include:

The macroeconomics objectives were achieved in the political period of Musharraf. As we know that macroeconomic objectives include three factors; GDP growth rate, Inflation and Rate of unemployment and balance of payment. Following is the graphical representation of the macroeconomic objectives achieved at the time of Musharraf.

The uk government sets monetary policy by adjusting the funds rate. This affects other short-term and long-term rates, including credit-card rates and mortgages. Governments define fiscal policy by setting taxation levels and writing legislation and regulation for everything from health care to the environment. Fiscal and monetary policy changes can affect businesses directly and indirectly, although competitive factors and management execution are also important factors.

Improvement in the UK economy is usually dependant on the improvement of four major factors, economic growth, balance of payments, unemployment and inflation. This should lead to steady economic growth that would lead to a steady increase in the productive capacity in the economy. Income tax is the percentage of income that people are taxed upon that is given to the government. There are many policies that can be used to tackle these certain goals, for example fiscal and monetary policy. Fiscal is a change in government spending or taxation, an example of fiscal policy is to reduce taxation and thus give consumers more spending power, hopefully increasing economic activity. Monetary policy is centred on interest rates, for example reducing

Chapter nine: Explain how the average American is three times as rich as they would have been in 1950. Explain the most effective “knock” on GDP. What does the author think about the effectiveness of fiscal policy? Explain how a current account surplus/deficit can be good and bad.

The performance of the UK economy depends very much on the level of Aggregate demand within the economy. AD=C+I+G+(X-M). The UK economy can be judged by a number of key indicators mainly sustainable economic growth, low inflation (target 2%), a surplus on the

Regardless to that when UK is in a recession the sterling is weak which means that overseas visitor can get more pounds for their money and would find UK much more cheaper which encourage inbound visitor to visit the UK. A recession

However, in the economy of an oil-exporting country, AD will likely be high due to high profits when exporting oil to foreign consumers. This would mean that there will be an increase in the balance of trade due to an increase in (X-M) causing the AD curve to shift rightwards causing demand pull inflation. In order to produce more output to meet the increased demand, firms are forced to bid for increasingly scarce resources, raising their costs. They therefore require a higher price to be willing to supply more. With exports rising, the price elasticity of demand is low and there is a relatively small decrease in quantity demanded for oil. Therefore export revenue will probably rise, resulting in an improvement on the current account.

UK government was very swift in its response the financial crisis. Various measures were taken to address the economic anomaly that came with the crisis. These range from various monetary policies to fiscal policies. Some of these policies are discussed below:

When governments look at policies to reduce unemployment, they tend to look at the short term and then the long term. In the short term, they need to ensure there is sufficient demand and economic growth in the economy to help control cyclical unemployment. This is done by adopting

Since World War II, government policymakers have tried to promote high employment without causing inflation (National Archives, 2010). If the economy experiences a recession such as the one that plagued the UK, policymakers, two principal sets of tools to use are aggregate demand: monetary policy. These involve the control of interest rates or the money supply, and fiscal policy, the control of government spending and taxes (National Archives, 2010).

Furthermore, the Fund also recognized that after nearly four years of “internal devaluation,” the economic strategy had not succeeded. The idea of an “internal devaluation” is that if you create enough mass unemployment and push wages down far enough, the economy can become more competitive due to lower labor costs. This allows exports to grow, and import-competing industries to also do better, improving the trade balance. Since exports add to economic growth and employment, and reduced imports do the same, the economy can recover in this scenario due to increasing net exports (exports minus imports). Normally this could be attempted through a devaluation of the currency. But the troika has only recently shown any intention of trying to push the euro’s value down against external trading partners; and of course since it is a common currency, the more depressed economies within the currency union can’t devalue against the others (e.g. Spain versus Germany). This leaves “internal devaluation” as the remaining hope for recovery for countries such as Spain, Greece, and Portugal. In other words, despite the negative impact of the fiscal austerity, the theory is that “internal devaluation” based on lower labor costs can drive recovery based on the growth of net exports.

This report will explain the meaning of Brexit and introduce the influence of Brexit on macroeconomic in Britain. The definition of Brexit is that the Unite Kingdom (UK) will exit from European Union (EU), which raising concern around the world. Brexit has drawn greater worldwide attention, then the increasing number of questions which about the damaging of British macroeconomic has been referred. According to “Brexit means Brexit”, which said by the prime minister of UK. The government of Britain is determined to deliver an exit from the EU. Moreover we can not ignore that the UK has already been a semi-detached

For example if we go out in market and buy some thing we pay some

“The main macroeconomic objectives of the government will include: low inflation, increasing the sustainable growth