Macroeconomic Theory: Fluctuations, Inflation and Growth in Closed and Open Economies

Macroeconomics is the study of the economy's growth, cycle, and price-level determination, taking into account stylized facts observed in the real world and building theoretical frameworks to explain them. Economic growth is a stylized fact of market economies, consisting of a persistent, smooth, and sustained increase in per-capita income. The economic cycle consists of periods of expanding and contracting economic activity, and the price of money is the amount of goods bought with one unit of money. Determination of the price level is a fascinating subject in a fiat money economy.

\n Format: Hardback
\n Length: 456 pages
\n Publication date: 02 October 2018
\n Publisher: Springer International Publishing AG
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Macroeconomics is a field of study that applies economic theory to understand the growth, cycles, and determination of price levels within an economy. It takes into account stylized facts observed in the real world and constructs theoretical frameworks to explain these facts. Economic growth, a characteristic of market economies, has been a prevalent phenomenon since the nineteenth-century industrial revolution in England. Prior to this era, poverty was a shared experience for humanity. Economic growth involves the persistent, smooth, and sustained increase in per-capita income. A market economy experiences periods of expanding and contracting economic activity, known as the economic cycle. The price of money, measured by the amount of goods purchased with one unit of money, represents the inverse of the price level. Determining the value of money, particularly in a fiat money economy, is a captivating subject of study.

Macroeconomics plays a crucial role in shaping economic policies and regulations. By analyzing the behavior of the economy as a whole, policymakers can identify trends, assess economic conditions, and make informed decisions to promote stability, growth, and social welfare. Macroeconomic variables such as GDP, inflation, unemployment, and interest rates are closely monitored and analyzed to gauge the health and performance of an economy.

One of the key challenges facing macroeconomics is managing economic fluctuations and ensuring sustainable growth. Macroeconomic policies aim to balance economic demands and supply, stabilize prices, and promote job creation. These policies may include fiscal measures such as taxation and spending, monetary policies such as interest rate adjustments, and regulatory policies to control industries and markets.

Macroeconomics also has important implications for individual citizens and businesses. Understanding macroeconomic trends and policies can help individuals make informed decisions about saving, investing, and spending. Businesses, on the other hand, can use macroeconomic analysis to assess market conditions, forecast demand, and optimize their operations.

In conclusion, macroeconomics is a fundamental field of study that provides insights into the growth, cycles, and determination of price levels within an economy. It plays a crucial role in shaping economic policies and regulations and has important implications for individuals and businesses. By understanding the principles of macroeconomics, we can better understand the complex dynamics of the modern economy and work towards a more prosperous and sustainable future.

\n Weight: 832g\n
Dimension: 162 x 241 x 34 (mm)\n
ISBN-13: 9783319921310\n
Edition number: 1st ed. 2018\n