In other words, it can help to improve bank’s solvency ability and it plays a critical role in the safety of banking system....
[tags: Macroeconomics, Inflation, Monetary policy] - Macroeconomics is the field of economics that studies the behavior of the whole economy, not just on specified companies but entire industries and economies.
Studying, combining and improving these strategies is one of the main directions of economic science.
- The economy tend to move from boom to recession, it is difficult for government to maintain and achieve macroeconomics objectives.
[tags: Inflation, Monetary policy, Macroeconomics] - To better understand the real impact macroeconomics has in an economy or a particular industry, it is better to define what macroeconomics is and what it attempts to study.
Contrary from microeconomics which studies the impact that individuals or companies have in a local economy, macroeconomics focuses on the behavior of the economy or industries as a whole, in a national or global perspective.
Using models of growth on a country wide basis, Lucas is able to track the rate at which nations become industrialized, and the growth rate of the average income once industrialization has taken place.
In doing so, he has come to the conclusion that the average rate of growth among industrialized nations is around 2% for the last 30 years, but is higher the closer the nation is to the point in time that it first industrialized....
Our nation’s unemployment rate has dropped down recently to five percent, the lowest in seven whole years.
A high unemployment rate, such as during the Great Depression, can provoke political and legal changes....