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 growth rate, inflation rate, unemployment rate and balance of payments. It is a “mix of external and internal balance, which in turn implied, in the second case, full employment and stable economic growth, accompanied by low inﬂation.” (Ocampo, 2007)
The building of long-term growth essentially means the long run economic growth of a particular country. “Economic growth occurs when real GDP increases…Economic growth is a sustained, year-after-year increase in potential GDP (Parkin, 2014:544)
South Korea is one of the leading countries in technology and entertainment with a population of 50.95 million. The government has been constantly making efforts to reinforce the groundwork for long- term growth and improve the real economy. ((KOCIS), 2013)
Economic performance of South Korea over past 6 years (2006-2011)
GDP growth rate
The GDP growth rate of this country expanded 1.1 percent in the third quarter of 2013 over the previous quarter. The economy developed at an average 1.1 percent on a quarter over quarter basis, driven by exports which accounts for half of its GDP. (Tradingeconomics.com, 2013) GDP, or gross domestic product, is the market value of the final goods and services produced within a country in a given t...
... middle of paper ...
...oad view of macroeconomic stability.
Parkin, M. 2014. Economics. Boston: Pearson.
Thejakartapost.com. 2013. Macroeconomic stability? By what definition?. [online] Available at: http://www.thejakartapost.com/news/2003/05/12/macroeconomic-stability-what-definition.html [Accessed: 30 Nov 2013].
Tradingeconomics.com. 2013. South Korea GDP Growth Rate | Actual Data | Forecasts | Calendar. [online] Available at: http://www.tradingeconomics.com/south-korea/gdp-growth [Accessed: 30 Nov 2013].
Tradingeconomics.com. 2013. South Korea Unemployment Rate | Actual Data | Forecasts | Calendar. [online] Available at: http://www.tradingeconomics.com/south-korea/unemployment-rate [Accessed: 30 Nov 2013].
Ustr.gov. 2013. Korea | Office of the United States Trade Representative. [online] Available at: http://www.ustr.gov/countries-regions/japan-korea-apec/korea [Accessed: 30 Nov 2013].
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- How unemployment, underemployment and discouraged workers affect the GDP in an economy. “We blacks were the first people embracing Obama, long before the people at expensive fundraisers were supporting him. We gave him his first love, 96 percent of blacks voted for him in 2008. Yet today, we are the number one in unemployment, with 16 percent of American blacks out of work.” (Jesse Jackson 2011) The economy in United States is more and more decreasing over the time. The unemployment is becoming a big issue since many years.... [tags: macroeconomics, social stability, desintegration]
1159 words (3.3 pages)
- 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. (Investopedia.com, 2015) However, microeconomics and macroeconomics are interdependent and complement each other.... [tags: Macroeconomics Essay]
612 words (1.7 pages)
- Before learning any idea extensively, it is good to know the basics. Pertaining to macroeconomics, the basics may in fact be the most important part. Basics such as Gross Domestic Product, unemployment, inflation and other items create a foundation to macroeconomics, as well as the goals of the economy. An introduction is given in chapter 19 that states the basics as well as goals, briefly. Chapter 20 focuses on the measurement of macroeconomics, and looks extensively into calculation the many forms of Gross Domestic Product.... [tags: Unemployment, Economics, Gross domestic product]
1339 words (3.8 pages)
- Quiz 4; Social Responsibility Macroeconomics has furthered my understanding for informed citizens. Individuals in power, whether it be the president, the senate, the house or the Federal Reserve, hold a great deal of power in this nation economically speaking. The state of the nation’s and world’s economy affects everyone, multibillionaires to the lower middle class. It is extremely important to understand the current economy and to self assess the future to better one’s own finances. As defined in class, Macroeconomics is the study of the economy as a whole, i.e., the causes and relationships between important economic indicators such as unemployment, inflation, and the aggregate level... [tags: Monetary policy, Federal Reserve System, Economics]
980 words (2.8 pages)
- Macroeconomic Impact on Business Operations "Job Weak, Unemployment Soars, More Cuts coming, and Bankruptcies Jump 40%." These are typical headlines we see in the newspaper, internet, and journals. We also hear these in news, radio stations and office chats. These are valuable information that economists use to analyze economic situation of the country. These can also be information that individual use to guard their spending.... [tags: Macroeconomics economics economy business]
1738 words (5 pages)
- ... Private investments and human capital growth are key factors to the growth of economy. Chor Boon, G and Gopinathan. S (2006) explains that after the war, baby boom in the early 1950s together with the free immigration policy had resulted in an average annual population growth rate of 4.4 per cent between 1947 and 1957, and as the unemployment rate is standing at 5 per cent, rising to 9.2 per cent high in 1966. Singapore Government reacted by setting the improvement employment rate as a priority, the government sees a need to equip singaporean with technical skills as well as being literacy to meet the need of economic survival and stability.... [tags: macroeconomics, interest rates]
676 words (1.9 pages)
- Question 1 The macroeconomic environment is a dynamic environment, which could not remain unchanged (Gajewsky 2015). There are many factors influence the global macroeconomic environment, such as interest rate, exchange rate, GDP，aggregate demand, monetary policy and other macroeconomic variable (Oxelheim and Wihlborg 2008). These factors are closely associated with commodity price. For commodity price, the demand and supply are directly contributing to the price volatility. The changes in interest rates and exchange rates are significant influence for commodity output and it also has impact on the commodity prices (Dornbusch 1976).... [tags: Inflation, Monetary policy, Macroeconomics]
1224 words (3.5 pages)
- Since the failed attempt to control inflation by targeting the growth of monetary aggregates in the late 1970s and early 1980s, the Federal Reserve (the Fed) has explored the use of various policy guides, including price indices, gold prices, and indicators of future price levels (Wray 2004). Each was used, with varying success, to assist the Fed in carrying out its dual mandate: the promotion of price stability and maximum employment (Bell-Kelton 2006). National income accounting is a measure of the economy's overall performance.... [tags: Economics Economy]
1558 words (4.5 pages)
- Macroeconomic Impact on Business Operations This paper will discuss the objective of monetary policy and its influence on the performance of the economy as it relates to such factors as inflation, economic output, and employment. Monetary policy affects all kinds of economic and financial decisions people make in this country, whether to get a loan to buy a new house or car or to start up a company, whether to expand a business and whether to put savings in a bank, in bonds, or in the stock market.... [tags: Economics Macroeconomics Business]
1832 words (5.2 pages)
- Macroeconomics is the branch of economics concerned with the aggregate, or overall, economy. Macroeconomics deals with economic factors such as total national output and income, unemployment, balance of payments, and the rate of inflation. It is distinct from microeconomics, which is the study of the composition of output such as the supply and demand for individual goods and services, the way they are traded in markets, and the pattern of their relative prices. At the basis of macroeconomics is an understanding of what constitutes national output, or national income, and the related concept of gross national product (GNP).... [tags: Keynesian model, Macroeconomics]
1668 words (4.8 pages)