Economic Policy

Economic policy refers to the actions that governments take in the economic field. It covers the system of production, allocation of resources, exchange of goods and services, and consumption of products, all of which together form the economic system of a country. Economic policy can be divided into two main branches: fiscal policy and monetary policy. Fiscal policy involves the government's decisions regarding spending and taxation, while monetary policy involves decisions made by central banks to influence the money supply and interest rates. Economic policy aims to achieve various goals, such as price stability, full employment, and sustainable economic growth. In Hebrew, economic policy is called מדיניות כלכלית (midinut klalit). Other relevant translations include Política económica in Spanish, Politique économique in French, and Wirtschaftspolitik in German. Key contextual information includes the role of economic policy in addressing issues such as inflation, unemployment, and economic inequality, as well as the impact of globalization and technological advancements on economic policy-making.