Complex sentence: Examples of the latter, which are horizontal, economywide policies, are tightening credit and taxing capital gains, while examples of industrial policy, which involves vertical, sector-specific policies, include protecting textiles from imports and subsidizing export industries.
Split into simpler sentences: Examples of the latter, which are horizontal, economy-wide policies, are tightening credit and taxing capital gains. Traditional examples of industrial policy that involves vertical, sector-specific policies, include protecting textiles from imports and subsidizing export industries.