Decisions made by the government on its expenditure, taxation and borrowing

A process by which an increase in government expenditure crowds out private sector activity by raising the cost of borrowing

The balance between government expenditure and revenue

Effects by which government expenditure adjusts to offset the effects of recession and boom without the need for active intervention

The decisions made by government regarding monetary variables such as money supply and interest rates

The Body within the Bank of England responsible for the conduct of monetary policy

The interest rate is set by the Monetary Policy Committee of the Bank of England in order to influence inflation

The process by which a change in the bank rates affects inflation

A process by which liquidity in the economy is increased when the Bank of England purchases assets from banks

A range of measures intended to have a direct impact on aggregate supply - and specifically the potential capacity output of the economy

Policies that rely on allowing markets to work more freely and providing incentives for enterprise and initiative

Policies by which the government intervenes to stimulate aggregate supply