Macroeconomics: Government Objectives and Policies for Inflation and Unemployment

Macroeconomics

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................4
Government policy objective 1................................................................................................................4
Government objective 2..........................................................................................................................6
Other factors help to achieve these objectives.....................................................................................10
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................13

INTRODUCTION
Macroeconomics is a discipline of terms associated with the big functioning of an economic.
Microeconomics, on the other hand, is concerned with how personal financial actors, including
customers and businesses, make choices. Macroeconomics is the branch of economics that
studies huge or overall economic phenomena as well as how they function in nations. Since the
Fed Treasury's objectives durable population and macroeconomic stability assessed and attained
on an overall economic scale rather than on an individualized one, economics is thoroughly
scrutinized (Anderson, Asche and Garlock, 2019).
There are mentioned two main government objective is “to keeping inflation at 2%” and
“Lower unemployment”. The aim for inflation is 2%, as measured by the growth in the
Consumer Price Index over a 12-month period (CPI). The 2-percentage-point inflation objective
is symmetric and applicable at all occasions. This represents the UK monetary policy
application's emphasis on market stability for a forward inflation objective. The government's
approach to controlling inflation is unwavering, as is the Bank of England's operating autonomy.
The operative aim for monetary policy maintains a 2-percentage-point growth in the Consumer
Price Index over a 12-month period. The 2% inflation objective is in effect at all periods. The
importance of market stability as well as the inflation objective in the UK inflation targeting
framework is shown in this. Lowering unemployment reduces government debt and boosts the
economy. The availability of employment to individuals who are jobless positively affects the
fiscal condition of the country and leads to better economy. As per figures released previously by
the government institution ONS unemployment in the United Kingdom decreased to 4.1 percent
in December 2021, down from 4.2 percent in the previous quarter month. Observers have noted
the statistics also revealed solid payroll numbers, which indicated a gain of 184,000 jobs, which
showcases that the labour market is on its way from completely moving past the downward
conditions created during the pandemic.
On the basis of these objectives analysis monetary and fiscal policies that help to effectively
achieve these objectives. In this report consist of mention both objectives and related policy in
broad manner.