What is the role of policy making in economy?

Economies work through a process of step-by-step procedures where everything in the society is interlinked. Different factors work together to make the economy operate in a stabilized way. Just like the output of the economy is important for a country, it is also important how the production of goods and services is regulated in the market system. The economy works using a market system as its platform. As far as regulations are concerned, the government has a very important role to play. Not only a free market can create economic prosperity, but the role of policy making is also crucial.

Policy making is a process of establishing laws and regulations that allow a state to keep a check and balance over the market system. Without it, markets will not provide the country what it is created for. Role of government is always there. Policy making includes how you regulate the flow of currency in your country and how you take care if the prices in the market through established policies. Policy making defines how you tackle with the upcoming economic changes and how you control the present condition of the economy at both local and international levels. It is important for every country in the world to have efficient policymakers who can cause a positive impact on the economy and country as a whole.

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