Public economics is the study of government policy through the lens of economic efficiency and equity. At its most basic level, public economics provides a framework for thinking about whether or not the government should participate in economics markets and to what extent its role should be.
Public economics uses the tools of empirical analysis to study the impact of government policies on economic behavior and the distribution of resources in the economy.
The government uses public finance in order to overcome form inflation and deflation. During inflation, it reduces the indirect taxes and general expenditures but increases direct taxes and capital expenditure. It collects internal public debt and mobilizes for investment.
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