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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

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

With late-stage funding rounds becoming tougher, they are focusing more on due diligence, profitability path, governance and early entry into companies at lower valuations

Updated On: 12 Feb 2023 | 4:50 PM IST

Over the past year, global macroeconomic stability has improved, which sets the stage for good growth from 2024

Updated On: 05 Feb 2023 | 11:24 PM IST

The backdrop of the Budget augurs well for the government, but a closer look calls for a cautious approach

Updated On: 19 Jan 2023 | 10:26 PM IST

The industry is also grappling with a surge in employee attrition in recent times, led by the demand-supply gap, especially for digital tech talent

Updated On: 04 Jan 2023 | 8:39 PM IST

Worsening macroeconomic conditions have led to a reduction in the outlook for global smart home device shipments

Updated On: 26 Dec 2022 | 11:21 AM IST

The government remains committed towards strong macroeconomic fundamentals and financial stability despite global headwinds, a finance ministry report has said

Updated On: 20 Dec 2022 | 11:58 PM IST

Sensex declines in 4 out of 5 sessions in the week, Nifty50 in 3 sessions

Updated On: 09 Dec 2022 | 11:48 PM IST

"During our G20 Presidency, we shall present India's experiences, learnings and models as possible templates for others, particularly the developing world," the Prime Minister said

Updated On: 01 Dec 2022 | 11:28 AM IST

Kalyan Krishnamurthy expects the fallout of the global macro environment next year in areas such as company valuations and the funding environment as well

Updated On: 18 Nov 2022 | 10:36 PM IST

With headline inflation beginning to show signs of easing, the domestic macroeconomic outlook appears to be resilient though it is still sensitive to global headwinds, an RBI article said on Friday.

Updated On: 18 Nov 2022 | 4:42 PM IST

Trade weakness would affect growth

Updated On: 16 Nov 2022 | 11:15 PM IST

Qualcomm Inc., the biggest maker of smartphone processors, tumbled in pre-market trading after giving a far weaker forecast than expected, punished by the economic slowdown and Covid-19 lockdowns

Updated On: 03 Nov 2022 | 5:12 PM IST

Nirmala Sitharaman in a meeting with US Treasury Secretary Janet Yellen discussed a range of issues, including bilateral relationships, the global situation as well as India's upcoming G-20 Presidency

Updated On: 12 Oct 2022 | 8:00 AM IST

Business Standard brings you the top headlines at this hour

Updated On: 16 Sep 2022 | 9:27 AM IST

Investors were eagerly awaiting the outcome of the Jackson Hole Economic Symposium. And, the outcome may shape the market momentum for the next few days. But what exactly is this meet?

Updated On: 29 Aug 2022 | 7:00 AM IST