Determine in detail about the credibility factor

Let us consider, 'credibility' factor. The law, institutions and other created authorities lead to circumstances that can assure that the announced policies shall be carried out. In fact, law and institution create the environment in which policies are carried out. When we begin considering institutions, and assume that they create the environment so that credibility of a policy can be established, a logical first step becomes the active law in the country. Law is the legal restrictions to certain actions and may have several forms; government passes law at all the levels to regulate their own economic behaviour.