four economic policies

1. Monetary policy.
2. Fiscal policy.
3. Income policy.
4. Trade policy.
The first two policies are very much crucial for macro economics. Let us we need to discuss them –
 Monetary policy: (Related with money)
Monitory policy is the combination of interest rate money in circulation and money supply by manipulating which central bank or the Government can change the macroeconomic indicators.
The basic ingredients of monetary policy are money supply. Changes the money supply move interest rates up or down and affect speeding in sector such as business investment, housing and net exports.
      Money Supply            Interest rate                 Money in circulation            Investment             output      
      Money Supply            Interest rate                 Money in circulation            Investment             output    
So the objective of macro economics through monetary policy should be increase money supply.
Objectives of Monetary policy:
1. Price stability
2. Exchange stability
3. Full employment
4. Accelerating economic growth
5. Balance payment equilibrium
6. Safeguarding of the country’s gold reserve.