Redistribution of income and wealth is the process by which governments change how money and assets are shared
Glossary Category: Macro Intervention
policies to reduce inflation
Policies to reduce inflation, often called contractionary policies, are economic strategies used to slow down rising prices. These
quantitative easing
Quantitative easing (QE) is an unconventional monetary policy used by a central bank when interest rates are already
deficit financing
Deficit financing happens when a government spends more money than it earns from taxes and other income sources.
central bank
A central bank is a national institution that manages a country’s currency, money supply, and interest rates. It
credit creation
Credit creation is the way commercial banks increase the total amount of money in an economy. They do
policies to reduce unemployment
Policies to reduce unemployment are actions taken by the government to lower the number of people without jobs,
economic growth policies
Economic growth policies are actions taken by a government to increase the speed of actual growth and expand
causes of government failure
Government failure occurs when government intervention in the economy creates inefficient results rather than solving market problems. Key
government failure
Government failure happens when the government tries to step into the economy to improve a situation, but instead