Supply-side policy – definition
Supply-side policies include a range of policies designed to reduce costs, improve efficiency, productivity, and international competitiveness so that the economy can grow without experiencing inflation.
Specific policies include:
- Reducing marginal tax rates
- Improving labour flexibility and mobility
- Improving education, skills and training
- Deregulating markets previously dominated by state monopolies
- Eliminating imperfections in the labour market
- Incentives to enable business ‘start-ups’
- Improvements to infrastructure
[This list is not exhaustive]
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