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| Topic: |
Book Reports
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| Number of pages / Number of words: |
3 / 752 |
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Some policy rules can be imposed by external bodies, for instance the Exchange Rate Mechanism for currency.
A compromise between strict discretionary and strict rule-based policy is to grant discretionary power to an independent body. For instance, the Federal Reserve Bank, European Central Bank, Bank of England and Reserve Bank of Australia all set interest rates without government interference, but do not adopt rules...
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This can occur (for example) as a result of intervention by the International Monetary Fund.
[edit] Economic policy through history
Main article: Economic history
The first economic problem was how to gain the resources it needed to be able to perform the functions of an early government: the military, roads and other projects like building the Pyramids...
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