Macroeconomic policy instruments refer to macroeconomic quantities that can be directly controlled by an economic policy maker. Instruments can be divided into two subsets: a) Monetary policy instruments and b) Fiscal policy instruments. Monetary policy is conducted by the Federal Reserve or the central bank of a country or supranational region (Euro zone). Fiscal policy is conducted by the Executive and Legislative Branches of the Government and deals with managing a nation’s Budget.
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Famous quotes containing the words policy and/or instruments:
“We legislate against forestalling and monopoly; we would have a common granary for the poor; but the selfishness which hoards the corn for high prices, is the preventative of famine; and the law of self-preservation is surer policy than any legislation can be.”
—Ralph Waldo Emerson (1803–1882)
“Being the dependents of the general government, and looking to its treasury as the source of all their emoluments, the state officers, under whatever names they might pass and by whatever forms their duties might be prescribed, would in effect be the mere stipendiaries and instruments of the central power.”
—Andrew Jackson (1767–1845)