the.com/economic policy
the government deciding whose pain gets scheduled for later.
means the set of tools a government uses, taxes, spending, interest rates, regulation, to steer growth, jobs, and prices.
from emerged as a formal field when governments realized markets left alone still crash, panic, and starve people, from mercantilist tariffs in the 1600s to keynes rebuilding the idea after the 1929 crash.
two main leversfiscal is spending, monetary is interest rates
central banksoften legally independent from the politicians
lag problemeffects show up 12 to 18 months later
phillips curvelow unemployment and low inflation rarely coexist
for instance
new deal — us, 1933, government spending to fight the great depression
volcker shock — us fed, 1979, jacked rates to 20 percent to kill inflation
chinese reform era — deng xiaoping, 1978, opened markets, lifted 800 million from poverty
greek austerity — 2010 to 2018, eu bailouts tied to brutal spending cuts