Expansionary Monetary Policy A recent example of expansionary monetary policy was seen in the U.S. in the late 2000s during the Great Recession. As housing prices began to drop and the economy slowed, the Federal Reserve began cutting its interest rate from 5.25% in June 2007 all the way down to 0% by the end of 2008.1 With the economy still weak, it embarked on quantitative easing, purchasing government securities from January 2009 until August 2014, for a total of $3.7 trillion Contractionary Monetary Policy In april 2022 fed announced they will sell 95 billion dollar bonds to cool down economy inflation. (UK 2018) Expansionary Fiscal Policy 1932, fiscal policy became more expansionary and may have helped to end the Great Depression in the US US 2009 at the death of the great recession 800billion dollars to economy from new spending and tax cuts funding new roads and bridges which caused jobs Contractionary Fiscal Policy In the United States, the most recent large-scale use of contractionary fiscal policy came during President Bill Clinton’s time in office (1993–2001), when he increased taxes on high-income taxpayers and decreased government spending on both defense and welfare. As a result, the United States government went from being in debt to having a budget surplus. 28 to 36% for high income individuals Supply-side policies Tax cut: Finance Minister Amit Mitra has written to his counterpart at the Centre, Nirmala Sitharaman, urging her to take measures to increase demand in the economy as the have "failed" to boost the manufacturing sector. Gross fixed capital formation, which was Rs 12.3 lakh crore in the first quarter of 2019-20, fell to Rs 10.2 lakh crore in the corresponding period of the current fiscal, - "a fall of an investment by Rs 2.1 lakh crore, despite your corporate tax cuts", he said in the four-page letter. https://economictimes.indiatimes.com/news/economy/policy/supply-side-policies-failed-switch-to-dem and-stimulation-bengal-fm-writes-to-sitharaman/articleshow/86114044.cms Investment ​https://www.cbo.gov/publication/57407 Deregulation: Sweden government removed minimum wage floor in jan 2013 because they feel that it will bring the price of labor down Reducing power of trade unions: Expansionary Fiscal Policy American Recovery and reinvestment act of 2009 – was undertaken during the financial crisis of 2008 and it totaled $831 billion on spending mainly targeted at infrastructure, education and extension of unemployment benefits Singapore government introduced the resilience package which included an increase in expenditure on infrastructure during the global financial crisis. Real life Examples of EMP: Fed implemented EMP following great recession, lowing interest rates to stimulate AD. They cut IR from 5.25% in 2007 to 0% in 2008. In 2020 when COVID struck, the fed also implemented EMP. It purchased 500 billion $ in Treasury bills to stimulate the economy. Real Life Examples of SSP: Skills future credit in SG to encourage individuals to take ownership of their skills development and lifelong learning, introduced in 2015 - intervensionist Continuing Education & Training(CET) was a masterplan that aims to prepare SG workforce for the future. Launched in 2008 and refreshed in 2014. - interventionist The Hartz IV labor market reforms in Germany which leads to considerable degree of wage moderation which makes labor cheaper Sweden government removed minimum wage floor in jan 2013 because they feel that it will bring the price of labor down Thatcher and Reagan created laws where unions must announce that they are striking in order to minimize strikes etc. - UK and US in 1980s Antimonopoloy regulation - The Clayton Act: defines unethical business practices, such as price fixing and monopolies, and upholds various rights of labor. 1914 prevents anti competitive mergers Grab and uber were fined $13 million by singapore as an anti monopoly regulation to increase competitiveness and to ensure the market is not dominated by Privatization - in 2009 The Greek government finalized the privatization of Olympic Airlines on Monday. Marfin Investment Group agreed to pay €177.2m ($224.3 million) for Olympic in direct negotiations with the government, after the failure in January of an international tender to find a strategic investor.Mar 24, 2009 Infrastructure spending Singapore government introduced the resilience package which included an increase in expenditure on infrastructure during the global financial crisis. India infrastructure 1.4 trillion spending in 2019 with israel US and UAE Privatization: 1.4 billion $ sale of BA to private section. Two-thirds of the 720 million shares have been allocated to institutions, British Airways employees and foreign investors, and the remaining third will be offered to thousands of small British investors, a strategy in keeping with Prime Minister Margaret Thatcher’s privatization program.