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Macroeconomics

About Macroeconomics

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What is Macroeconomics?

Macroeconomics: Definition

Macroeconomics is a branch of economics that deals with how an economy functions on a large scale. It differs from microeconomics, which deals with how individual economic players, such as consumers and firms, make decisions.

What is macroeconomics?

Macroeconomics is concerned with understanding economy-wide events such as the total amount of goods and services produced, the level of unemployment, and the general behaviour of prices. The objective of macroeconomic study is to investigate principles, problems, and policies related to achievement of full employment and expansion of production capacity. It deals with how different economic sectors such as households, governments and industry make their decisions.
Macro economists employ aggregate measures such as gross domestic product (GDP), unemployment rates, and the consumer price index (CPI) to analyse large-scale consequences of individual decisions. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.
Over the years many economists revolutionised macroeconomic thinking with their ideas. The classical school of economic thought believed that market forces would correct problems such as rising unemployment and recessions and any intervention by the government would be counter-productive.
However, during the Great Depression of the 1930s, existing economic theory was unable either to explain the causes of the severe worldwide economic collapse or to provide an adequate policy solution to jump-start production and employment. British economist John Maynard Keynes overturned the then-prevailing idea that free markets would automatically provide full employment.

What is Keynesian theory?

Keynes's theory or the Keynesian theory argues that state intervention is necessary to moderate the booms and busts in economic activity, otherwise known as the business cycle. Keynes ushered in a new era of macroeconomic thought that viewed the economy as something that the government should actively manage. Several schools of thought have developed since including the monetary model of macroeconomics and rational-expectations hypothesis.

Latest Updates on Macroeconomics

Macroeconomic impact of climate change will be big

Updated On: 12 Jun 2024 | 10:22 PM IST

BPM industry has been growing faster than the IT services sector, which has been impacted by macroeconomic uncertainties

Updated On: 28 Apr 2024 | 10:29 PM IST

Besides, trading activity of foreign investors, movement of global oil benchmark Brent crude and rupee-dollar trend would also influence trading in equities

Updated On: 10 Mar 2024 | 10:30 AM IST

Besides, energy costs are likely to increase in the second half of the current fiscal, as the domestic e-auction premia on coal is projected to be significantly higher

Updated On: 03 Jan 2024 | 4:34 PM IST

Brent crude futures fell $1.59, or 2.06%, to $75.61 a barrel by 1454 GMT. US WTI crude futures fell by $1.67, or 2.31%, to $70.65 a barrel

Updated On: 06 Dec 2023 | 9:59 PM IST

Besides, the trading activity of foreign investors and the movement of global oil benchmark Brent crude will also be tracked

Updated On: 29 Oct 2023 | 10:32 AM IST

Brokerage goes 303 bps overweight on domestic markets in MSCI Asia Pac ex-Japan portfolio

Updated On: 11 Oct 2023 | 12:52 PM IST

That said, some of the mid-tier IT firms may fare better, delivering better growths

Updated On: 08 Oct 2023 | 1:41 PM IST

In recent years, the inflation rate in Pakistan has been volatile, influenced by various factors like currency devaluation, energy, and food prices in the global market

Updated On: 02 Sep 2023 | 6:53 PM IST

Order book and deal pipeline of most companies remain strong, says ratings agency

Updated On: 29 Aug 2023 | 4:13 PM IST

According to the survey of the World Economic Forum's Chief Risks Officers community, more than 85 per cent of CROs expect some level of continued volatility

Updated On: 27 Jul 2023 | 12:54 PM IST

Macroeconomic environment remains challenging, impacting client spending: Rishad Premji

Updated On: 12 Jul 2023 | 12:31 PM IST

BFSI, telecom feel the pinch; Ebit margin too may shrink

Updated On: 02 Jul 2023 | 3:30 PM IST

Foreign Portfolio Investors (FPIs) have pumped Rs 37,316 crore in Indian equities in May so far, primarily due to strong macroeconomic fundamentals and reasonable valuation of stocks

Updated On: 28 May 2023 | 11:56 AM IST

At $2.2 billion of inflows, this is the lowest private equity investment in the country since 2018, when it stood at $1.7 billion

Updated On: 11 Apr 2023 | 5:38 PM IST

Japan logged a current account surplus of $16.6 billion in February, the Finance Ministry said in a report on Monday

Updated On: 10 Apr 2023 | 2:35 PM IST

Global cellular IoT module shipments grew 14 per cent (year-on-year) in 2022 to register a record high annual volume, despite macroeconomic headwinds, a new report said on Wednesday

Updated On: 29 Mar 2023 | 5:58 PM IST

India along with the United Kingdom would play a 'facilitator role' in discussing the issues with member countries during the two-day summit, he said

Updated On: 23 Mar 2023 | 7:17 PM IST

The credit quality of Indian finance companies will continue to improve owing to the country's strong macroeconomic trends, said S&P Global Ratings.

Updated On: 13 Mar 2023 | 2:29 PM IST

"We expect CPI inflation to average 5.5 per cent (6.7 per cent in F23 estimates) and the current account deficit to track at 2.5 per cent of GDP in F24 (2.9 per cent in F23 estimates)"

Updated On: 03 Mar 2023 | 2:55 PM IST