circulation of money running in a stable rhythm. Macroeconomics takes an upper view to the economy of countries in the world, studying each country economic characteristics, in order to understand the economy environment, think into the future of the economy, gives a hand in making the decision of the economic leaders, shifting the country wealth into different sides, wealth and growth of a population also depends on the Macroeconomics study’s. Macroeconomics controls money by a very wide methods and tactics
Background of the Study The impact of finance companies in an economy includes the areas of both micro economics and macroeconomics. This is because the finance company benefits firms and individuals as well as the entire economy. Microeconomics is generally the study of individuals and business decisions and macroeconomics looks at higher up country and government decisions. Macroeconomics and microeconomics, and their wide array of underlying concepts, have been the subject of a great deal of writings
above statement that macroeconomic stability as well as building long-term growth have been critical in the success of these countries. What is macroeconomics stability Macroeconomics stability refers to sustainable economic growth, low and stable inflation, low and stable unemployment and a sustainable balance of payments (BOP) position. These are the four goals that are important for any country to maintain macroeconomic stability. These are measured by key macroeconomic indicators such as GDP
The Limits to Macroeconomic Policy A country’s economy represents an equilibrium driven by the vast workings of many moving parts. Some of these parts include governments, policy makers, trade partners, international investors and banking authorities. Today’s technological advancements have made it easier than ever for monies to traverse national borders quickly and efficiently. This capability facilitates inflows and outflows of capital in response to signals. Not all of these signals are economic
sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector. A variety of groups are concerned
2) The financial crisis of the late 2000s resulted in enormous costs to the economies of many countries and the fortunes of millions of families, and it challenged a host of our conceptions and theories of corporate governance. The governing boards of many financial-services firms seemed unable to prevent the risky and ill-fated decisions that jeopardized their firms, devastated their investors, and helped precipitate a financial meltdown that morphed into global recession . An important lesson
Inflation Joe Bardawil Notre Dame University – Louize January 15th, 2014 Outline Economic Crisis and Inflation Thesis statement: Economic crisis and inflation will lead to recession in macroeconomics aspect of a country, deterioration of the monetary value of the currency, and reduction of the purchasing power I. Recession in macroeconomics aspect of a country A. Definition of recession in macroeconomics B. The effect of inflation on the recession C. Possible solution II. Deterioration of the
its highest level during this time. Introduction The recent global financial crisis that affected not only America but also Europe and other parts of the world resulted in massive unemployment. This is due to the high costs of operation that many corporations faced forcing them to cut on labor costs. There is need for European government interventions to avert this social crisis and prevent the occurrence of such a crisis in future. Unemployment has hit the service sector harder than other sectors
innovations and the unhealthy industrial competition between countries has led to many global problems e.g. Global financial crisis, global warming. The 2007-09 world financial crises have been a persistent reminder of the many-sided nature of the disaster. It hit from small and large to poor and wealthy countries. As appropriately discussed by Reinhart and Rogoff (2009a) that financial disaster are an identical chance menace. They have both local and exterior origins and originate from private or
Financial Economics: an Introduction Financial Economics is the branch of Economics that analyses the use and distribution of resources in markets by taking into account the interrelationship of financial variables such as prices, interest rates and shares. Financial economic decisions are usually made in an uncertain environment by evaluating how time, risk, opportunity costs and information can create incentives and disincentives. In this context, the field of Finance acts like an economic time