What are structural policies primarily designed to change?

Structural policies are primarily designed to change economic institutions and frameworks within an economy. These policies aim to address fundamental issues that can hinder economic growth and efficiency, such as regulatory frameworks, market structures, and institutional practices. By reforming these underlying structures, structural policies can promote competitiveness, enhance productivity, and foster long-term economic stability.

For example, redefining labor market regulations can impact employment dynamics, while improving technological infrastructure can boost economic innovation. Such policies are often necessary to facilitate a more conducive environment for investment and development, ultimately leading to healthier economic activity.

While consumer behavior, market prices, and inflation rates are important aspects of the economy, structural policies specifically target the systems and institutions that underpin these elements, making them essential for achieving sustainable economic improvement.