The government played a crucial role in shaping economic policy from "summary" of The affluent society by J.K. Galbraith
The shaping of economic policy is a task of considerable complexity. The traditional view holds that this task is best left to the market forces, which are assumed to operate with the precision and efficiency of a well-oiled machine. However, this view often neglects the many ways in which government intervention can influence economic outcomes. In reality, the government plays a crucial role in shaping economic policy through its various tools and mechanisms. These tools include fiscal policy, monetary policy, and regulation. Through fiscal policy, the government can adjust tax rates and government spending to influence aggregate demand in the economy. Similarly, through monetary policy, the government can contro...
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