Implementation of economic policy

Active economic policy is based on analyzes of the current situation and expectations of future developments; their successes must be monitored. The state sets framework conditions for economic activity but also intervenes in economic processes on a case-by-case basis.

Tasks of economic policy planning

The most important tasks of economic policy planning consist of diagnosis, prognosis, and monitoring the success of the implemented policy.  Just like in qq online, there are some policies that are to be implemented.

The diagnosis checks the state of the economy and the previous success of the economic policy goals pursued. The forecast represents a conditional forecast of economic development, in particular of the effect of planned economic policy measures. At the end of the day, the success control has the task of determining whether the goals have been achieved or not, and of giving indications as to which policy changes may be necessary.

Diagnosis of economic policy

The diagnosis analyzes the existing economic situation and compares it with the previously set goals. During the diagnosis, information about the economic reality must be collected and evaluated. The most important source for this is official statistics, but additional information may have to be obtained from the administration or from research institutes, for example in the form of expert reports. However, such information is not free: its acquisition creates costs that must be compared to the additional benefits for economic policy.

Success control of economic policy

Effective economic policy contributes through its measures in the desired manner and to the desired extent to the attainment of economic policy goals. In addition, economic policy is efficient when it has taken precisely those measures through which it was able to achieve its goals with the lowest possible cost.

Rules and discretion

In view of the many uncertainties and weaknesses with which diagnosis and impact prognosis are afflicted, the question arises whether an economic policy with great discretion and numerous individual interventions does not cause more harm than good. Interventions on a case-by-case basis are associated with risks, as it is often difficult to predict whether and with what time delays they will have an effect.