Most countries are very concern about their economic growth rates, in which, impressive positive and improving growth rates equates to employment, wealth, and stability; whereas, lack of growth, or uneven growth, leads to unemployment, poverty, and instability. This thus means that countries spend an inordinate amount of time trying to manage their economy, as well as their interest rates, along with virtually every facet that a government believes that it needs to have an impact and an influence upon, all under the assumption that these governmental decisions will lead to higher and more consistent growth rates, and to better prosperity.
Yet, despite all of this knowledge and all of the analytics, economies still suffer through booms and busts, of which, some of these cycles, are especially enervating, leading to a significant swath of the population thereby losing their jobs, their homes, and their joy, when those seemingly inevitable recessions and depressions hit. While there are all sorts of theories and studies in regards to how to best grow an economy, as well as to help smooth out the economic ups and downs within economies, none of this has actually been proven to work in the real world for even a generation, let alone, for generations.
Perhaps, the most significant problem that governments have is the fact that they are unable to recognize that the biggest contributor to the downfall of economies is actually mal-investment; in which monies and energies are put into industries, companies, and people that are not worthy recipients of that money. Further, to the point, the cost of money being borrowed, most definitely plays a material role as in whether a particular company will or won't be successful, for if that company is fundamentally sound in its business, but its debt load is too heavy, than that company will often fail or become unstable, because it does not have the ready capacity to pay back what it owes.
In point of fact the best way for economies to grow on a consistent basis is to provide credit issuance at a fair rate to those that are worthy recipients of that credit, whether these entities are governmental, non-profitable companies, individuals, or for-profit corporations. This signifies that before credit is issued, whether private or public, that due diligence is necessary in order to allocate these funds into areas of most worth, as opposed to monies being loaned to those that are simply well connected, or projects that are favored in order to unfairly benefit specific entities, at the expense of the general public.
After all, there are millions upon millions of ideas and projects that can be funded, for mankind's imagination and reach is well-nigh unlimited, but not all of these ideas and projects are actually a good idea to fund; and the misallocation of that investment, is a double loss, because that money is placed into the hands and areas that should not have it, as opposed to the hands and areas that should have it. The decisions that governments and companies make most definitely matters and the best decisions for economies are those decisions that place the faith and credit of those issuing such into the areas that are beneficial for the public at large.