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.

supply side policy diagram

Specific policies include:
  1. Reducing marginal tax rates
  2. Improving labour flexibility and mobility
  3. Improving education, skills and training
  4. Deregulating markets previously dominated by state monopolies
  5. Eliminating imperfections in the labour market
  6. Incentives to enable business ‘start-ups’
  7. Improvements to infrastructure

[This list is not exhaustive]