An activist policy is a government economic policy that uses elements of monetary and/or fiscal policy to respond dynamically to current economic conditions with the objective of stabilizing the economy.
A buffer stock is used in agriculture to stabilize the price of commodities. The government purchases excess production for storage and sells that storage stock in years of low production. In general, the use of buffer stocks stabilizes commodity market price swings.
A dirty float, also known as a managed float system, is an exchange rate system where the value of a currency is determined by supply and demand factors in the foreign exchange market, but where the government or central bank occasionally intervenes to stabilize or manage the currency.
Discretionary Policy refers to government economic policies that are not automatic or built into the system but require active intervention by policymakers to influence economic activities.
A free market is an economic system characterized by minimal or no government intervention, where prices are determined by supply and demand dynamics. It's an environment where transactions between buyers and sellers are governed primarily by mutual consent without external pressures from monopolies, cartels, or collusive oligopolies.
Laissez-faire is a doctrine that advocates minimal government intervention in business and economic affairs, allowing for free market forces to dictate economic outcomes.
A managed economy is one in which the government intervenes extensively to direct economic activity. Such intervention is characteristic of socialist and communist economies, in stark contrast to capitalist economies where market forces predominantly guide economic activity.
An economic system combining private and public enterprise, where both market forces and government intervention are used to determine the allocation of resources and prices.
Economic policies championed by President Barack Obama to achieve economic recovery and effect reforms, calling for increased involvement by the government in the private sector in areas such as health care, banking, automobiles, college education finance, consumer protection, and environmental protection.
An overvalued currency is a currency whose value is artificially higher than its market value due to governmental support or intervention. This misalignment can impact a country's trade balance, economic stability, and competitiveness.
Pegging is a method used to stabilize the price of a security, commodity, or currency by intervening in the market. This term is commonly associated with maintaining exchange rate stability and supporting commodity prices, like agricultural goods, through governmental action.
A government-set price floor designed to aid farmers or other producers of goods, ensuring minimum revenue and market stability.
A pure-market economy is an economic system in which the forces of supply and demand determine the production, distribution, and consumption of goods and services, with little to no government intervention.
