4. Fiscal Policy 13, 4.1. Introduction 135 4.2. Reduction of public sector employment and wages 136 4.3. Reduction of public investments 138 4.4. Reduction of food subsidies 139 4.5. Reduction of other subsidies 142 4.6. Increase in prices/cutting of services provided by public 142 enterprises 4.7. Summary of the effects on the food economy and food security 143 5. Monetary Policies 145 5.1. Main features of monetary policies under adjustment 145 5.2. Effects of tighter monetary policies 147 5.3. Impact on the food economy and food security 148 6. Trade Policy 150 6.1. Contents of trade policies 150 6.2. Effects of trade liberalisation on the food sector 151 7. Agricultural Market Reforms and Sectoral Adjustment 154 7.1. Objectives of agricultural sector, market and price policies 157 7.2. Price policy instruments 158 7.3. Other agricultural sector policies 162 7.4. Impacts on food security 163 8. Further Elements of Structural Adjustment Programmes 164 8.1. Institutional reform 164 8.2. Other sector policies and linkages to food security 166 9. Assessing the Overall Impact of Adjustment Programmes on Food 167 Security Activities related to Chapter 4 173 Chapter 5 Domestic Policy Interventions to Improve Food Security 181 1. Introduction: Embodying a Food Security Dimension in Macro and 184 Sector Policies 2. Production and Supply Based Approaches 187 2.1. Increasing food production and supplies 187 2.2. Stabilising food supplies 191