A feminist approach to macroeconomics

What is macroeconomic policy?

Macroeconomic policy is the use of monetary and fiscal policy to achieve economy-wide objectives. Monetary policy is typically conducted by central banks and comprises decisions about interest rates, financial regulation and inflation targeting. Fiscal policy is determined by the government and covers public expenditure, taxation and borrowing.

Feminist aims for economic policy

The Women’s Budget Group believes that the ultimate goal of economic policy should be to improve the well-being of people in an environmentally sustainable way, by creating a Green and Caring Economy. In a green and caring economy, everyone should have secure access to food, shelter, education, health and care to meet their basic needs. It implies living in a healthy environment, with access to clean water and air, green areas and rich biodiversity. Resources should be equally distributed, helping to build strong communities and spaces that allow people to flourish. Unpaid care and domestic work have substantial economic importance, despite not having a market value, as our society relies on them to function.

However, mainstream economic policy tends to focus only on paid activities and fails to take into account unpaid care and domestic work, which is mostly done by women. This renders this work invisible, even though it is fundamental for human life and the economy.

To better represent all costs and benefits, and provide solutions that work for everyone, every activity needed to sustain life and society should be considered when making economic policy decisions. Failing to do so risks worsening economic conditions for women and deepening inequality.

Read the full briefing here

Download the explainer poster here