Contractionary policy

Examples of Contractionary policy in the following topics:

• Monetary Policy

  • It is referred to as either being expansionary or contractionary.
  • A contractionary policy expands the money supply more slowly than usual or even shrinks it.
  • Contractionary policy is intended to slow inflation in hopes of avoiding the resulting distortions and deterioration of asset values.
  • Monetary policy differs from fiscal policy.
  • A policy is referred to as "contractionary" if it reduces the size of the money supply, increases the money supply slowly, or if it raises the interest rate.

• Monetary Policy

  • Monetary theory provides insight into how to craft optimal monetary policy.
  • It is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it.
  • Contractionary policy is intended to slow inflation in hopes of avoiding the resulting distortions and deterioration of asset values.
  • Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing.
  • The primary tool of monetary policy is open market operations.

• Fiscal Policy and Policy Making

  • Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.
  • The two main instruments of fiscal policy are government taxation and expenditure.
  • Neutral fiscal policy, usually undertaken when an economy is in equilibrium.
  • Contractionary fiscal policy, which occurs when government spending is lower than tax revenue, and is usually undertaken to pay down government debt .
  • Comparison of National Spending Per Citizen for the 20 Largest Economies is an example of various fiscal policies.

• Fiscal Policy

  • Fiscal policy is the use of government revenue collection or taxation, and expenditure (spending) to influence the economy.
  • Neutral fiscal policy is usually undertaken when an economy is in equilibrium.
  • Expansionary fiscal policy involves government spending exceeding tax revenue, and is usually undertaken during recessions.
  • Contractionary fiscal policy occurs when government spending is lower than tax revenue, and is usually undertaken to pay down government debt.
  • Review the United States' stances of fiscal policy, methods of funding, and policies regarding borrowing

• Policy Adoption

  • Policy adoption is the third phase of the policy process in which policies are adopted by government bodies for future implementation.
  • The media can also play a key role in policy adoption.
  • Once the relevant government bodies adopt policies, they move into the next phase of the policy process, policy implementation.
  • Bush's plan for Social Security prevented policy adoption.
  • Identify which groups can expedite or retard the adoption of policy

• Policy Implementation

  • Policy implementation is the fourth phase of the policy cycle in which adopted policies are put into effect.
  • The implementation of policy refers to actually enacting the proposed solutions.
  • The judiciary may overrule the implementation of such policies.
  • In addition to the aforementioned elements, policy implementation can further be complicated when policies are passed down to agencies without a great deal of direction.
  • The most surprising aspect of the policy process may be that policies are implemented at all.

• Policy Evaluation

  • Policies may be evaluated according to a number of standards.
  • Policies may also be substantively evaluated through careful, honest feedback from those affected by the policies.
  • Policy evaluation can take place at different times.
  • Policies can be difficult to assess.
  • Policies may also contain multiple objectives that may not be compatible.

• Coordinating and Promoting Party Policy

  • Democratic and Republican National Committees help coordinate and promote party policies but do not organize the creation of policies.
  • The Democratic National Committee (DNC) and Republican National Committee (RNC) help to coordinate and promote party policies, although they are not the central organizations that develop these policies.
  • While the planks of platforms do not all necessarily become policies, they can lead to highly politicized debates between parties that become party policy stances.
  • The DNC and RNC promote party policy in a variety of ways through the mass media.
  • The DNC and RNC utilize various forms of mass media to promote their party's policies.

• Policy Formulation

  • Formulation is the second stage of the policy process and involves the proposal of solutions to agenda issues.
  • The issue of traffic safety has been solved by various policies throughout time.
  • The ultimate policy that is chosen to solve the issue at hand is dependent on two factors.
  • Secondly, policies must be politically feasible.
  • Policy formulation is, therefore, comprised of analysis that identifies the most effective policies and political authorization.

• Foreign Policy

  • A country's foreign policy includes all of the policies it develops to pursue its national interests as it interacts with other countries.
  • Foreign policy is designed to protect the national interests of the state.
  • Modern foreign policy has become quite complex.
  • In the past, foreign policy may have concerned itself primarily with policies solely related to national interest--for example, military power or treaties.
  • The Secretary of State is a primary leader in determining U.S. foreign policy.