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Our Economics Coursework Experts can work on different types of economic policy topics. Mainly, we find three types of economic policies. These seek as their ultimate goal to influence economic activity. On the other hand, the influence of these will be expansive or restrictive depending on the desired objective:
Fiscal Policy- It is the economic policy in the hands of the government. In it, we find public spending, transfers, and taxes. By changing any of them the government directly influences the economy.
Monetary Policy- It is the economic policy in the hands of the central bank. They control the money supply and can influence the economy. The monetary policies used are the legal cash ratio, the central bank interest rate, and the controllable factors of the monetary base ( open market operations and loans to banks and the government ).
Exchange Policy- This policy is the one that influences the foreign exchange market through the variation of the exchange rate expected by economic agents. Although this, in turn, acts on economic activity.
Capitalism Or Market Economy- This economic system defends production based on private property, the existence of competitive markets, and the law of supply and demand for setting prices.
Socialism or Planned Economy- This system defends collective property and the regulation of markets through the setting of prices by the State, to which the companies belong.
Mixed Economic System or Mixed Economy It is a mixture of the two previous systems. This economic system combines regulation by the state with a certain freedom of the market.
Traditional Economy- It is an economic system that is based on family or community relationships. This system in modern society is obsolete due to its static nature and the brake that it supposes to economic development.
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