Economic policy
Under the economic policy refers to the totality of the measures by which the State , regulating and shaping through to legitimate entities in the economy intervenes. Economic policy is subject to the existing economic system and determines the rules as to how economic agents should interact. Economic policy is such a branch of general state policy .
Economic Policy Theory
The theory of general economic policy is a branch of economics and deals with the organizational principles of economic systems and economic processes. It is divided into positive and normative economics . Positive economics describes and explains the economic situation ( diagnosis ) and tries to predict future developments ( prognosis ). Normative economics deals with target systems, target conflicts and target-means relationships and derives recommendations for action for politics.
Types of economic policies
In principle, economic policy is divided into regulatory policy , structural policy and process policy . The former aims at the framework conditions under which the economic subjects make their decisions , the latter includes interventions in the regional and sectoral structure of the industry, the latter is characterized by the fact that the state actively intervenes in the market processes.
- To governance in particular, is one of competition policy .
- For structural policies include infrastructure policy, regional and sectoral structural policy.
- To process policies include labor market policy , fiscal policy , fiscal policy , monetary policy , trade policy , economic policy .
- Economic policy also includes the areas of social policy and currency policy .
Economic policy directions
The two main directions are that
- Supply policy (supply-oriented economic policy) places the return expectations of investors at the center of considerations. The funds therefore mainly relate to the economic policy framework (monetary stability, wages, working time regulations, taxes, etc.).
- Demand policy (demand-oriented economic policy), deals with the stabilization of macroeconomic development. The means are countercyclical fiscal policy (e.g. increasing expenditure when there is weak private demand or reducing expenditure when there is excessive demand ) and expansionary or contractionary monetary policy.
Target system of economic policy
There are many different goals in the target system of economic policy:
- The final economic goal, e.g. B. the common good , the maximization of social welfare
- The main economic policy objectives
- Maximizing Economic Welfare
-
Allocation target
- Protection and promotion of competition
- state supply of public goods
- environmental Protection
- Stability target
- High employment
- Price level stability
- Growth target
- Increase in real per capita income ("quantitative growth")
- Improved supply of collective goods ("qualitative growth")
- External balance
- Structural objective
- Promotion of the flexibility of adaptation of the offer
- Alignment of regional wage, residential and leisure values
- Distribution target / distribution target
- (Benefit) fair distribution of income and wealth
- social equity of the distribution of income and wealth
-
Allocation target
- Maximizing Economic Welfare
- The detailed economic policy goals
- The main economic policy objectives
- The basic socio-political goals, e.g. B. Freedom, Justice, Security and Progress.
Economic policy and target relationships
The German Stability Act requires that the four economic policy goals be achieved at the same time (see also Magic Square ). Since the goals mentioned are interrelated, a certain intervention can affect all goals in some way, which leads to an almost unmanageable structure of effects. However, there are different relationships between the goals:
- Conflict ( trade-off ) or target competition is when a measure pursues an economic policy objective, however, another disadvantage or it is detrimental. A promotion of one goal is therefore at the expense of another (see also Phillips curve ).
- Target harmony exists when a certain economic policy measure serves two or more goals at the same time.
Whether there is a conflict of goals or a harmony of goals depends, among other things, on the time perspective (short-term vs. long-term). In the short term, the sustainability goal seems to have a trade-off with the other goals, since environmental protection measures cost money. In the long term, however, there are target harmonies.
The 4 quantitative goals of economic policy are (magic square):
- high level of employment
- Price level stability
- Economic growth
- external balance
Qualitative goals of economic policy are (magic square to magic hexagon):
literature
- Jörn Altmann: Economic Policy . Lucius & Lucius, Stuttgart 2007, 382521317X.
- Friedrich Breyer, Martin Kolmar : Foundations of economic policy . Mohr Siebeck, Tübingen 2010, ISBN 978-3-16-150193-7 .
- Juergen B. Donges , Andreas Freytag : General economic policy . Lucius & Lucius, Stuttgart 2009 (new edition), ISBN 3-8252-2191-1 .
- Hans Peter Grüner : Economic Policy: Fundamentals of Allocation Theory and Political-Economic Analysis (Springer textbook) 4th edition. 2012, ISBN 978-3-642-28373-4
- Josef Gruntzel : Outline of economic policy . 5 volumes: 1. General Economics , 2. Agricultural Policy , 3. Industrial Policy , 4. Trade Policy , 5. Transport Policy . Hölder-Pichler-Tempsky, Vienna 1909.
- Ullrich Heilemann, Heinz Gebhardt, Hans Dietrich von Loeffelholz: Economic and political chronicle of the Federal Republic . Lucius & Lucius, Stuttgart 2003, ISBN 3-8282-0264-0 .
- Rainer Klump: Economic Policy - Instruments, Goals and Institutions . Pearson Studium, Munich 2006, ISBN 3-8273-7238-0 .
- Walter AS Koch, Christian Czogalla, Martin Ehret: Basics of economic policy . UTB Lucius & Lucius 2008, ISBN 3-8252-8265-1 .
- Ralf Kronberger, Reinhold Hofer: Austrian economic policy . Facultas, Vienna 2012, ISBN 978-3-7089-0763-5 .
