Just Governments...
Saudi Arabia uses monarchy based on Islam for their government system. The king directs the government and also the military. He also chooses a Crown Prince that he wants for assistance and is the second line to the throne. The Council of Ministers called Cabinet helps him with ruling the country which consists of 22 government ministries in the Cabinet. Each of them work on different parts of the government such as education and finance. Since the country is an Islamic state, they use judical system that is based on Islamic law which King holds the power of final court .
On the other hand, Spain runs a constitutional monarchy under constitution that was built since 1978. The hereditary monarch is the head of the army who also makes laws and choose candidates for prime minister. When legislature approve the prime minister that the king proposed, he becomes the head of the government. There is National assembly in Spain which consists of 350 delegates elected by voting system. All of them serve for four years and work for for differently divided areas.
On the other hand, Spain runs a constitutional monarchy under constitution that was built since 1978. The hereditary monarch is the head of the army who also makes laws and choose candidates for prime minister. When legislature approve the prime minister that the king proposed, he becomes the head of the government. There is National assembly in Spain which consists of 350 delegates elected by voting system. All of them serve for four years and work for for differently divided areas.
Fiscal policy of Spain
Spain tries to decrease the unemployment rate by creating “hiring” tax break. The government is trying to encourages business owners to hire young generations in order to solve long term unemployment. Those owners who support this get a tax reduction which is in the range of 75 - 100% for the incentive. Also the government is planning to reduce its spending on others to pay more attention on solving this serious problem.
Monetary policy of Spain
The number of people borrowing money from the banks in Spain has been increasing which means that the interest rates have gone down. For this, Spain local bank gets loans from European centralized banks and such policy is expansionary as people do not feel reluctancy to owe money and go for economic activities.
Fiscal policy of Saudi Arabia
There is increases in the rate of growth of Saudi Arabia since 1969. It is because the government spending shows positive sign consistently. Such growth suggests more government investments in production and improvement on administration and increase purchasing power. The government is also tying to do more spending on capitals which will raise the price of oils that they produce mostly. It is a expansionary fiscal policy since government is looking to spend much money.
Monetary policy of Saudi Arabia
The exchange rate is the huge part of the monetary policy in Saudi Arabia since it is a variable for stability of price and payments. The intervention policy that Saudi Arabia runs under exchange regime is the result of foreign exchange rate and interest rates.
Spain tries to decrease the unemployment rate by creating “hiring” tax break. The government is trying to encourages business owners to hire young generations in order to solve long term unemployment. Those owners who support this get a tax reduction which is in the range of 75 - 100% for the incentive. Also the government is planning to reduce its spending on others to pay more attention on solving this serious problem.
Monetary policy of Spain
The number of people borrowing money from the banks in Spain has been increasing which means that the interest rates have gone down. For this, Spain local bank gets loans from European centralized banks and such policy is expansionary as people do not feel reluctancy to owe money and go for economic activities.
Fiscal policy of Saudi Arabia
There is increases in the rate of growth of Saudi Arabia since 1969. It is because the government spending shows positive sign consistently. Such growth suggests more government investments in production and improvement on administration and increase purchasing power. The government is also tying to do more spending on capitals which will raise the price of oils that they produce mostly. It is a expansionary fiscal policy since government is looking to spend much money.
Monetary policy of Saudi Arabia
The exchange rate is the huge part of the monetary policy in Saudi Arabia since it is a variable for stability of price and payments. The intervention policy that Saudi Arabia runs under exchange regime is the result of foreign exchange rate and interest rates.
Conclusion
Of the two countries Spain and Saudi Arabia, Spain has implemented the most preferable economic policies. The way Spain made fiscal policy and monetary policy is absolutely clever solution to their problems that they are having. As shown on the data comparison above, Spain has very high unemployment rate which is a serious problem. It is even twice higher than what Saudi Arabia has. As a result, according to the data Spain's economic growth was recorded minus and there must have been huge contribution of this high unemployment rate. In order to solve this problem, Spain has implemented clever fiscal and monetary policies that encourages increase in employment rate .The government is trying to encourages business owners to hire young generations in order to solve long term unemployment. They provided people those owners with a tax reduction which is in the range of 75 - 100% for the incentive. Also the government is planning to reduce its spending on others to pay more attention on solving this serious problem. Also, they are helping in people to have low interest rates in borrowing money from the bank. On the other hand, Saudi Arabia is more general on their policies when Spain is specifically made to solve the most serious problem. For these reasons, Spain has implemented more preferable economic policies. The government should manipulate to the point where citizens can start with the model or a stable base. When people have supports to start a new thing, they have less burden and worries about the risks. The government plays huge role as they can lessen this burdens in its citizens. Spain is great example for the evidence. Spain government gave tax reduction to those people who try to start a business and borrowed money with less rate so that they have less burden in starting new business up. As a result, more and more people borrowed money from the bank and stated up businesses.
sources
https://www.cia.gov/library/publications/the-world-factbook/
http://www.sama.gov.sa/sites/SAMAEN/Pages/Home.aspx
http://www.bde.es/bde/en/
http://www.infoplease.com/encyclopedia/world/spain-government.html#ixzz3OfpFeE9A
https://ideas.repec.org/p/amu/wpaper/2010-07.html
http://www.albawaba.com/fiscal-stimulus-policy-aided-saudi-economy-382710