Effectiveness of Supply-side Policies
Supply-side Policies
Syllabus requirement
Evaluation of time lags, equity trade-offs, costs, political feasibility, and environmental effects. Market-based strengths include efficient allocation; interventionist policies directly support key sectors.
Summary
This topic evaluates how effective supply-side policies are at increasing an economy’s productive capacity, reducing unemployment and keeping inflation low and stable. It compares market-based measures (deregulation, privatisation, tax cuts) with interventionist measures (education, infrastructure, R&D), and explains the main strengths, constraints and time horizons that determine whether these policies achieve macroeconomic objectives.
Real-world examples for this unit

U.S. Deregulation of Transportation and Telecommunications

UK 10 Year Infrastructure Strategy

Johor's AI Data Centre Boom: FDI, Supply-Side Growth and Sustainability

Germany's €500bn Infrastructure Fund: Fiscal Policy and Long-Run Growth