What Role Do Governments Play in Mitigating Economic Crises?
Governments can play a crucial role in mitigating the impact of economic crises through various policies and interventions, such as:
1. Monetary Policy: Central banks can adjust interest rates and implement quantitative easing to stimulate economic activity. 2. Fiscal Policy: Governments can increase spending on infrastructure projects and provide financial aid to businesses and individuals to boost demand. 3. Regulatory Reforms: Implementing regulatory changes to address systemic issues within the financial system can prevent future crises.