Friday 2 January 2015

Principles of Macroeconomics

It is imperative to understand the principles of macroeconomics, in order to comprehend the rapidly changing macroeconomic environment, day to day economic developments (that you read about in national and international online and print media), the recent and current economic performance and behavior of your respective economies and the global economy and better understand what policymakers, economists and experts have to say about substantive macroeconomic issues such as GDP, inflation, interest rates, recession etc. Further, an understanding of the principles of macroeconomics will prove very useful for career advancement and/or making prudent and well-informed financial, business, strategic, managerial, marketing, sales, economic, consumption and/or savings related decisions in a milieu of rising economic uncertainty.

Principles of macroeconomics includes core concepts such as gross domestic product, consumer spending, private investment, aggregate demand and aggregate supply, business cycles, inflation and unemployment, monetary policy, fiscal policy, exchange rates and balance of payments, economic growth etc.


If you wish to learn the principles of macroeconomics on your own and have no, little or inadequate background of economics, then I would suggest that you take up an online course or a book that explains the core concepts of macroeconomics in a non-mathematical and digestible manner. Avoid online courses or books on principles of macroeconomics that are too technical or mathematical (unless you want to be an economist), as you could unnecessarily get caught up in equations and technicalities. Instead, focus on an online course or a book that is more practical, non-technical and easy to understand. You can search for an online course in macroeconomics (introductory or foundation level) or buy a book online – there are several options available on the internet.  

Another point worth keeping in mind is that if you wish to learn the principles of macroeconomics, do also try to simultaneously read about economic developments in  key economies – US, UK, Eurozone, Japan and China – and in your own economy, so that you can relate what you study with what is happening in the ‘real world.’  

Blog by:
Sher Mehta
CEO and Chief Economist
Macroeconomics School
sher.mehta@macroeconomics-school.com

No comments:

Post a Comment