This chapter examines the most significant effects that changes in government fiscal, monetary and regulatory policies exert on the construction industry. In order to understand why governments make on-going adjustments to these different policies, it is necessary to explore the key macroeconomic objectives that most present-day governments seek to achieve. In the next section, these core objectives are examined: economic growth, full employment, control of inflation, stability in the balance of payments and the external exchange rate and the protection of the environment. When many aspects of these policies are changed, there will often be a significant impact on the construction sector. The areas of fiscal, monetary and regulatory policy are separately looked at in detail.