MACRO in a MICRO

Human beings are busy. Actually, that is some kind of a plain understatement. Human beings are REALLY busy. We inhabit on this very earth that is, in reality, a fast-pacing, ever-changing vogue of a world. There’s a lot going on around it that it would serve real struggle to attract a particular demographic (or even a basic audience, to be bluntly honest) to a discussion on Macroeconomics. Yeah, you read that right. That is economics, with a “macro” cream topping on it. And you want to know what’s really funny? You probably don’t even care what that term means.

That is basically why AMMSTAR is here --- to make you care about Macroeconomics, in a sexy, cool way. And we are serving a summary dish of Macroeconomics in a yummy nutshell.

To start off, saying that Macroeconomics is tepidly useless does not only qualify as a fallacy, but as a downright insulting shame. Turn your TV set on, and transfix it to your local nightly news. Observe the show. They talk about pork barrel, inflation/deflation, unemployment, oil price hike, rice hoarding, etc. These are Macroeconomics issues. So did you ever wonder why they would dedicate such fat amount of airtime on issues you deem useless? Well sorry to disappoint you, bud, but Macroeconomics basically affects you, big time.

So as a breathing ground to this amazing blog, let’s talk about the stepping stones of Macroeconomics – its fundamentals. They basically are concepts that deal with stuff like government expenditures, growth, productivity, unemployment, market price levels, aggregate output and monetary policies affecting ventures and currency value. This trend shows that macroeconomics deals with the entire scope of the economy as well as considering the behavior of its aggregates --- income, output and unemployment. These aggregates are greatly affected by some factors as well, such as consumer demands, inflation rate, job availability, and household behavior. 

It would also be good to know about two concepts involved in Macroeconomics --- the fiscal and the monetary policy. Fiscal policy is the use of government expenditures and revenue collection (in simple terms, taxation) to influence the economy. It involves a shift in the government’s budget position, which will normally include tax cutting, higher government spending and a bigger budget deficit. In short, the national government has the control gear. On the other hand, monetary policy is the influencing of the demand and supply of money through the use of interest rate flexing, or creation of new banks. In here, the Central Bank holds control position. Yet, both are used to minimize inflation.

So after all has been said and done, and you still wonder how and why Macroeconomics is important in your life, go see a shrink; because, whether you like it or not, Macroeconomics will affect you and I, and the entire bloody human race.