What is macroeconomic policy?

"Macro-policy" refers to the conscious and planned use of certain policy tools by the state or government to regulate and control the operation of macro-economy in order to achieve certain policy objectives. \x0d\ Macroeconomic policy tools are the means to achieve policy objectives. Among macroeconomic policy tools, demand management, supply management and international economic policy are commonly used. \x0d\ 1。 Demand management \x0d\ Demand management refers to a macroeconomic policy tool to achieve certain policy objectives by adjusting total demand. It includes fiscal policy and monetary policy. Demand management policy is based on Keynes's total demand analysis theory and is a policy tool that Keynes values. Demand management is to achieve the goal of neither unemployment nor inflation through the adjustment of total demand and total supply. Its basic policies include policies to achieve full employment and policies to ensure price stability. In the case of insufficient effective demand, that is, when the total demand is less than the total supply, the government should adopt expansionary policies and measures to stimulate the growth of total demand, overcome the economic depression and achieve full employment; When the effective demand grows too fast, that is, when the total demand is greater than the total supply, the government should adopt austerity policies and measures to curb the total demand in order to overcome inflation caused by excessive demand expansion. \x0d\ 2。 The core of supply management \x0d\ supply school theory is to shift attention from demand to supply. Supply management is to achieve certain policy objectives through the adjustment of total supply. In the short term, the main factor affecting supply is the production cost, especially the wage cost in the production cost. In the long run, the main factor affecting supply is the growth of production capacity, that is, economic potential. Supply management policies include income policy, indexation policy, manpower policy and economic growth policy. 1) income policy. Income policy refers to the policy of limiting the rate of price increase by limiting the growth rate of wage income, so it is also called wage and price management policy. Income is managed because inflation is sometimes driven by costs (wages) (see cost-driven inflation). The purpose of income policy is to stop inflation. It has the following three forms: first, wage and price guidelines. According to the changes of labor productivity and other factors, the limit of wage and price increase is stipulated, mainly the wage growth rate. Enterprises and trade unions should determine the wage increase range according to this guideline, and enterprises should also determine the price change range of products accordingly. If they violate this criterion, they will be punished in the form of taxes. The second is to freeze wages and prices. That is, the government uses legal and administrative means to prohibit raising wages and prices within a certain period of time. These measures are generally adopted in special periods and also in periods of severe inflation. The third is the tax stimulus policy. That is, using taxes to control growth. 2) Index strategy. The indexation policy is to adjust the nominal value of all kinds of income according to the inflation rate in a specific period, so that its real value remains unchanged. Mainly: First, wage indexation. The second is tax indexation. That is, the personal income adjustment tax is automatically adjusted according to the price index. 3) Human resource policy is also called employment policy. This is a policy aimed at improving the structure of the labor market to reduce unemployment. Mainly: First, human capital investment. The government or relevant institutions invest in workers to improve their cultural and technical level and physical quality, so as to meet the needs of the labor market. The second is to improve the labor market. The government should constantly improve and increase various employment agencies to provide rapid, accurate and complete information for both labor supply and demand, so that workers can find satisfactory jobs and enterprises can get the employees they need. The third is to help workers move. The mobility of workers between regions, industries and departments is conducive to the rational allocation of labor force and the best use of talents, and can also reduce the unemployment caused by the regional structure of labor force and the difficulty of labor mobility. The assistance to the flow of workers includes providing sufficient information, necessary material help and encouragement. 4) Economic growth policy. Mainly: first, improve the quantity and quality of the labor force. Ways to increase the labor force include increasing the birth rate and encouraging immigrants to enter the country. The way to improve the quality of labor force is to increase investment in human capital. The second is capital accumulation. Capital accumulation mainly comes from savings, and people can be encouraged to save by reducing taxes and raising interest rates. The third is technological progress. Technological progress is playing an increasingly important role in modern economic growth. Therefore, promoting technological progress has become the focus of economic policies in various countries. Fourth, balanced growth in a planned way. The coordinated growth among various departments in modern economy is required by the economy itself, and the national planning and coordination should be realized by indirect means. \x0d\ 3。 International economic policy \x0d\ International economic policy is the adjustment of international economic relations. In reality, every country's economy is open, and the links between countries' economies are getting closer and closer, influencing each other. A country's macroeconomic policy objectives include international economic relations (that is, international balance of payments), and the realization of other objectives depends not only on domestic economic policies, but also on international economic policies. Therefore, international economic policies should also be incorporated into macroeconomic policies.