Macroeconomic Policy in the SOE

Abstract

Economic policy covers a broad range of measures which differ, inter alia, with respect to their objectives, decision mechanisms, instruments, transmission channels and time frame. A key distinction is between macroeconomic and microeconomic policies. The latter affect particular sectors of the economy or are otherwise selective in their impact and are usually called structural policies. They are for good reasons also referred to as supply-side, long-term or sectoral policies. The role of the EU for structural policies will be reviewed in Chapter 7.