Macroeconomic policy instruments

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Macroeconomic policy instruments are macroeconomic quantities that can be directly controlled by an economic policy maker.^[1][2] Instruments can be divided into two subsets: a) monetary policy instruments and b) fiscal policy instruments. Monetary policy is conducted by the central bank of a country (such as the Federal Reserve in the U.S.) or of a supranational region (such as the Euro zone). Fiscal policy is conducted by the executive and legislative branches of the government and deals with managing a nation’s budget.