Policy Impact Dashboard
Policy Impact Overview
This dashboard provides a high-level overview of how recent policy changes and government interventions are influencing key economic indicators and market outcomes. Use this dashboard to understand the effects of fiscal, monetary, and regulatory policies on the economy.
- Fiscal Policy: Government spending and taxation decisions that impact economic growth, employment, and inflation.
- Monetary Policy: Central bank actions (like interest rate changes) that influence inflation, currency strength, and borrowing costs.
- Regulatory Policy: Laws and regulations affecting business operations, trade, and investment.
Recent Policy Highlights
- Interest rate hikes to combat inflation in major economies
- New trade agreements and tariff adjustments
- Stimulus packages to support post-pandemic recovery
- Regulatory changes in technology and energy sectors
Key Market Outcomes
- Shifts in stock market performance following policy announcements
- Changes in consumer and business confidence
- Fluctuations in inflation and employment rates
- Impacts on trade balances and currency values
Economic Forecasts Based on Policy Changes
Recent policy changes are designed to achieve several key economic objectives. Below are the main objectives and forecasted outcomes under different scenarios (low, neutral, high impact) for the next 1-2 years, as well as 5, 15, and 30 year horizons.
- Objectives:
- Reduce inflation to target range (2-3%)
- Stabilize or lower unemployment rates
- Support sustainable GDP growth
- Enhance business and consumer confidence
- Improve trade balance and currency stability
| Indicator | 1-2 Years | 5 Years | 15 Years | 30 Years | Worst Case (Recession) |
|---|---|---|---|---|---|
| Inflation Rate | Low: 3.5% Neutral: 2.5% High: 1.8% | Low: 3.0% Neutral: 2.2% High: 1.7% | Low: 2.8% Neutral: 2.0% High: 1.5% | Low: 2.7% Neutral: 2.0% High: 1.5% | Deflation: -0.5% or Stagflation: 5%+ |
| Unemployment Rate | Low: 4.5% Neutral: 3.8% High: 3.2% | Low: 4.2% Neutral: 3.5% High: 2.9% | Low: 4.0% Neutral: 3.2% High: 2.5% | Low: 3.8% Neutral: 3.0% High: 2.2% | 7% - 12% (sharp rise) |
| GDP Growth | Low: 0.8% Neutral: 2.0% High: 3.2% | Low: 1.2% Neutral: 2.3% High: 3.5% | Low: 1.5% Neutral: 2.5% High: 3.8% | Low: 1.7% Neutral: 2.7% High: 4.0% | -2% to -5% (deep recession) |
| Business Confidence Index | Low: 95 Neutral: 102 High: 110 | Low: 97 Neutral: 105 High: 115 | Low: 100 Neutral: 108 High: 120 | Low: 102 Neutral: 110 High: 125 | 80-90 (very low) |
| Trade Balance (% of GDP) | Low: -2.5% Neutral: -1.0% High: +0.5% | Low: -2.0% Neutral: -0.5% High: +1.0% | Low: -1.5% Neutral: 0.0% High: +1.5% | Low: -1.0% Neutral: +0.5% High: +2.0% | -4% or worse (sharp deficit) |
| Currency Strength | Low: -5% Neutral: 0% High: +3% | Low: -4% Neutral: +1% High: +5% | Low: -3% Neutral: +2% High: +7% | Low: -2% Neutral: +3% High: +10% | -10% or more (sharp depreciation) |
Interpretation: The actual outcome will depend on global conditions, policy execution, and market sentiment. High-impact scenarios assume effective policy, strong global demand, and positive confidence effects. Low-impact scenarios reflect weak policy transmission or external shocks. Neutral is the most likely if policies are implemented as planned and no major shocks occur.