Economic Policy

Economic policy and economic analysis are closely related. All economic policies are adopted on the basis of economic theories. The creation of policies to achieve specific goals is not a simple matter.

First step is to make a clear statement about economic goals. If we say that we want full employment, do we mean that everyone between 16 and 65 years of age should have a job? Or do we mean that everyone who wants to work should have a job? Therefore economic goals must be specific.

Next step is to formulate alternative policies to achieve the goal and determine the possible effects of each policy. This requires a detailed assessment of economic impact, benefits, costs and political feasibility of alternative policies.

After implementing policy we need to check how well it worked. Only through unbiased evaluation we can improve on economic policy. These policies are augmented at a more specific level by measures designed for industrial investment, research and development and to protect consumer’s interests.

Central Bank

A central bank is the most important institution of the country which is responsible for safe-guarding its financial stability and thus it is guided not by profit motive but by the principle of maximum welfare of the society.

It controls and monitors all the activities, directly or indirectly of all other banks. It holds the ultimate reserves of the nation, controls and supply of money and acts as the banker to the state. It performs many other important functions. It sees that the monetary policy is formulated as according to the conditions of the economy and sees towards its implementation. It issues notes and currencies within the country and is entrusted with responsibility of maintaining the price level in the country stable. It acts as bank to the government and it directly or indirectly controls the activities of all other banks.

What is Charge Card?

Charge card are almost similar to credit cards but they don't have a monthly spending limit like $500, $5,000 etc. Its holder can make an unlimited number of purchases with his card, but he needs to pay back the entire balance in full each month or year as per policy.

Charge cards generally impose a fee and tack on penalties to discourage its holder from not paying back the balance. The cost of having a charge card is often significantly lower than the cost of having a credit card. For many consumers this is due to the interest related debt that can be racked up with the credit card.