policy tools

Policy tools are methods governments use to influence the economy and society. They include fiscal policies, like changing taxes and government spending, to manage economic growth and stability. They also involve monetary policies, such as adjusting interest rates and controlling the money supply, to maintain inflation and employment levels. Additionally, policies can include regulations, laws, and programs aimed at addressing specific issues like healthcare, education, or environmental protection. Overall, these tools help governments shape economic outcomes and improve citizens’ well-being through strategic intervention.