PPT On Demand And Supply Side Policies

Demand And Supply Side Policies Presentation
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Demand And Supply Side Policies Presentation Transcript:
1.Demand and supply side policies

2.Demand-side Policies
Fiscal Policy
Monetary Policy

3.Expansionary Fiscal Policies

4.Contractionary  Policies

5.Strengths of Fiscal Policy
Combats rapid and escalating inflation
Government spending directed at redistribution of income
Government spending on the provision of public goods and services
Combats a deep recession

6.Weaknesses of Fiscal Policy

7.Monetary policy -
process by which the monetary authority of a country controls the supply of money
The official goals usually include relatively stable prices and low unemployment
expansionary or contractionary

8.Weakness of demand side policies-
Time Lags
Data lags
Political lags
Implementation lag
inflation.
Can cause a budget deficit
"Crowding out

9.Supply side policies-
Supply Side economics is the branch of economics that considers how to improve the productive capacity of the economy
emphasise the benefits of making markets, such as labour markets more flexible
Supply Side Policies are government attempts to increase productivity and shift Aggregate Supply (AS) to the right.
supply side policies can involve government intervention to overcome market failure

10.Supply Side Policies
1. Privatisation
2. Deregulation
3. Reducing Income Taxes
4. Increased education and training
5. Reducing the power of Trades Unions
6. Reducing State Welfare Benefits
7. Providing better information
8. Deregulate financial markets
9. Lower Tariff barriers
10. Removing unnecessary red tape
11. Improving Transport and infrastructure
12 Deregulate Labour Markets