Public Policies And Economic Crises

The paper will analyze in which way and what is the overall impact of the public policies can and should be applied governments or local responsibilities in order to fight against macroeconomic disequilibrium’s. From all the major three economic policies, pubic spending policy, fiscal policy and monetary policy, each has a special role and has a sudden or a longer time in which results should appear. Only one single public policy cannot correct market private failures. We cannot find one economic model that can be applied in economics in order to avoid or to surpass economic crises. A mixture of all public policies can be the solution for national economies and a classical liberal view at international level. Should financial policy become a goal of the public policy makers? Or by using public spending policy governments should achieve a lower rate of unemployment? The crises in financial systems that have occurred have demonstrated the linkage between financial stability and the health of the economy. We must say that the forces which shape public policies in periods of economic crisis tend to be different in character from the major determinants of policy-making in periods of prosperity. So that we must analyze if between the causes of economic and financial crisis are also some causes from the public sector economy and if it is possible to make the disappear or at least to be fewer. We must ensure that all the data’s will be influenced by the level of how much an emergent economy id depending on trade with developed countries. If at national level public policies can modify the economic environment a free trade phenomenon can be the solution for decreasing disparities and lowering possibilities of wide economic crisis.