Steering the economy
A HM Treasury case study

Page 1: Introduction

In providing an overview of the workings of the economy, this case study focuses on the key role of HM Treasury in implementing Government economic policies.It focuses on: How the Government deals with macroeconomic issues such as economic growth, employment and inflation. These issues are about the economy as a whole. How the Government deals with microeconomic issues such as the performance...
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Page 2: Government strategy

The Government’s central economic objective is to achieve high and stable levels of growth and employment that will build a stronger economic future for Britain. We live in an environment in which a range of forces constantly impacts upon   organisations and their activities. On coming into office, the Government introduced a new framework for monetary and fiscal policy designed to...
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Page 3: Government aims and objectives

Economic stability is essential for long-term growth and high levels of employment. The person responsible for running the nation’s economy to meet this objective is the Chancellor of the Exchequer. The UK Government Departments responsible for executing taxation and spending policies that come directly under the responsibility of the Chancellor are HM Treasury, Inland Revenue and Customs...
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Page 4: Macroeconomics

Macroeconomics is concerned with the economy as a whole – not details of individual industries or products – regarding key issues such as: inflation - percentage increase per annum in the price of goods and services output and growth - measures the total income of the economy in goods and services investment - doing without consumption today in order to generate future...
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Page 5: Microeconomics

Microeconomics is concerned with the treatment of specific individual markets, products and types of organisations. Business people support Government policies that support the actions of individual business organisations and encourage them to be more efficient and compete more effectively. In recent years many measures known as ‘supply-side’ economics have been introduced, designed to...
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Page 6: Conclusion

This case study has provided a broad overview of the workings of the UK economy. Economic growth, fairness and opportunity go hand-in-hand. An economy in which a significant proportion of the population is unable to fulfil its potential will be poorer and less productive. HM Treasury assists the Chancellor of the Exchequer in developing an economic strategy which enables the Government to meet its...
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