1. Conventional Macroeconomic Policy

The goals of economics of sovereign nations have been deliberated for decades, and much insight has gone into refining them to a standardized macroeconomic framework. Our current world, with its recurring economic crises and financial breakdowns, has raised questions on this very macroeconomic framework. In this chapter we explore the goals and objectives of the macroeconomic framework of modern-day societies. This is followed by a deliberation on the policies that contribute to achieving these economic goals, namely, fiscal, monetary and exchange rate policies. With the focus of the book on the fiscal aspect, the chapter delves deep into these policies by exploring the financing, the tools and the alternatives available in a fiscal policy framework.