Nobody downloaded yet

Macro economics - Essay Example

Comments (0) Cite this document
Summary
This decreasing saving tendency has been complemented by a poor moderation in household sectors borrowing behavior, which has caused the…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful
Macro economics
Read TextPreview

Extract of sample "Macro economics"

Download file to see previous pages This essay aims at explaining how fall in household savings can have a negative effect on the UK macro economy.
Savings kept in bank accounts are key part of money. To the extent banks decide to finance commercial investment with respect to amount of deposits they receive, an increased personal savings could raise investment by the established international organization. If money deposited is changed in equity subscription in ones own secure, savings serve for personal independence and careers, again with a possible connection to investment in a macro-economic sense.
Invested in the Treasury bonds, and savings finance public expenditure inform of shares, they may directly or indirectly fund the firms. Savings may also be transfer overseas by remittances, leading to rise to a new option between savings and consumption. For instance, in the form of buying an existing house or in funds on entrepreneurial activity). Insufficient and minimized savings due to a deliberate policy to promote the growth of GDP by independent consumption alone can reduce, if the policy is only feebly effective, the national economy capability to absorb treasury bonds, which in certain circumstances may put the country under high pressure by foreign creditors, when public debt is huge and prevalently held by foreigners (Swan, 2007). The paradox of thrift remains an important idea from the Keynesian economics. Reduced saving is observed as negative because it does not provides the money to finance the capital investments needed to promote a long-term economic growth. But if many people in UK start saving more in the same time, it may causes a drop in the consumer demand and even deeper recession. What can be rational and good for an individual can be damaging for whole economy at large,
Monetary easing (ME) is a type of monetary policy used by central banks, whereby it purchases financial assets from existing commercial banks and other private financial ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macro economics Essay Example | Topics and Well Written Essays - 2750 words - 1”, n.d.)
Macro economics Essay Example | Topics and Well Written Essays - 2750 words - 1. Retrieved from https://studentshare.org/macro-microeconomics/1699402-macro-economics
(Macro Economics Essay Example | Topics and Well Written Essays - 2750 Words - 1)
Macro Economics Essay Example | Topics and Well Written Essays - 2750 Words - 1. https://studentshare.org/macro-microeconomics/1699402-macro-economics.
“Macro Economics Essay Example | Topics and Well Written Essays - 2750 Words - 1”, n.d. https://studentshare.org/macro-microeconomics/1699402-macro-economics.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macro economics

Macro economics

...? Table of Contents Introduction 2 People’s Republic of China 2 India 5 Trends in each variables 7 Strengths and weaknesses of the economies 9 Conclusion 11 References 12 Economic Profiles of China and India Introduction The macro-economic profile of China and India, two of the emerging countries in the world today, will be discussed in this study. For each country, the following economic indicators : GDP and GDP growth rate, exchange rate, inflation rate, interest rate, unemployment rate, and trade deficits will be presented and compared with each other. The corresponding strength and weaknesses of these economies will be viewed. In the final analysis, a conclusion will...
11 Pages(2750 words)Research Paper

Macro Economics

...?Macro Economics Keynesian economics provided explanation for the problem of the Great Depression. The Great Depression of the year 1930 was the effect of the failure of aggregate demand in the economy according to Keynes. The loss of the confidence of the investors in the economy resulted in the fall of the market prices of stocks along with the subsequent fall in the investment purchases. The consumption expenditure of the society experienced a downfall through the multiplier effect. The firms in supplying goods and services are motivated by spending. The pessimistic attitude of the customers and the investors results in less spending in the economy. The focus shifts from expenditure to...
2 Pages(500 words)Essay

Macro Economics

...? Economic Analysis of Article [N a m e] INTRODUCTION: The economic recession has ended and almost all economies are now showing recovering trend. However, at the same time, condition of the American economy and national income is worth worrying. Similar, thoughts are presented in the article written by Rober Pear in The New York Times, with the title “Recession Officially Over, U.S. Incomes Kept Falling” (Online Version). In this commentary, an attempt has been made to explore and analyze the information presented in this article in context to different economic theories and concepts. INFORMATION PRESENTED IN THE ARTICLE: The article summarizes current situation of the economy of United...
3 Pages(750 words)Essay

Macro economics

...?Business Cycle Business cycle is essentially the rise and decline of economic activity. There is no specific or clear-cut span of time that determines a business cycle and the same may range for several years. Referred to as individual cycles, each one illustrates ups and downs that “vary substantially in duration and intensity” (McConnell and Brue 134). There are four phases of the business cycle that comprises of peak, recession, trough and recovery. Peak occurs when the business has reached a transitory high. Full employment is nearest capacity in this phase. Next, recession follows the peak which is characterized by decline lasting for six months or more in terms of income, employment, trade and total output....
4 Pages(1000 words)Essay

Macro Economics

...Macroeconomics The Case of Australia Executive Summary The macroeconomic variables play a vital part in determining the economic situation prevailingin a nation and because of the importance that could be associated with them, this topic has been taken up as the subject of this paper. The paper analyses the behavior of variables like rate of inflation, gross domestic product, gross investment, unemployment rate, private consumption, etc. that are the most vital determinants of the economic situation that an economy is going through at any point of time. The pattern of behavior that is exhibited from the growth structures of the variables could be assumed to be concluding that the economy in the period of...
8 Pages(2000 words)Essay

Macro Economics

...to increase money into the European economy. Though such an idea does not seem to be imminent, investors snapped up stocks and sold the euro based on ECB’s thinking. Investors are moved by signs that ECB is considering more policy measures to increase money in the European economy if current measures such as low interest rates, new bank lending facility as well as a program to buy particular types of debts fail to boost economic growth and inflation. France’s CAC 40 went up by 2.3 percent and Germany’s DA rose by 1.9 percent. In the same vein, Spanish stock rose by 2.4 percent and Italian stock went up by 2.8 percent. The ECB’s current initiatives are geared toward adding money supply to the economy by increasing the...
2 Pages(500 words)Assignment

Macro economics

...Macro Economics Table of Contents Table of Contents 2 Question 3 Introduction 3 Below Target Inflation 4 Consequences of Low rate of Inflation 5 Concerns for Deflation or Disinflation 6 Macroeconomic Tools & Side Effects 8 Conclusion 10 Question 2 11 Introduction 11 Four Key Macroeconomic Variables 11 Real GDP 12 Unemployment 12 Inflation Rate 13 Interest Rates 13 Influence of the Macroeconomic Variables 14 Objectives of the UK Government 16 Conclusion 17 References 19 Question 1 Introduction Inflation and deflation are the most important parts of an economy that help in determining the fiscal and monetary policies predominant within an organisation. Inflation and deflation are the determining terms of...
14 Pages(3500 words)Assignment

Macro economics

...regulations or legislations incorporated by European Union in their national activities through agriculture, service sectors, home affairs etc. The countries are liable to take their own decisions regarding international trade and are not restricted by imposition of regulations by any third party. UK, in order to enjoy such freedom in enhancing their trade relations with all the emerging and economically advanced countries in the world, must come out from EU (“House of Commons”). To Obtain a Cheaper Import and Export Activities Figure 1: Share of UK Import and Export in relation with EU Source: (“The UK Should Leave the European Union”) Such separation will enable UK to establish bi-lateral trade agreements free from...
7 Pages(1750 words)Essay

Macro Economics

...Macro and microeconomics Error of omitted variable and reverse causality Error of omitted variable is the error that occurs due toomission of a certain variable in determining a correlation. Reverse causality is a causal relationship that arises when there is a cause and effect relationship between variables. This means that the fact that events follow each other does not prove that the first event caused the other event. For instance, there is a relationship between high-income levels and good health whereby high incomes can lead to good health and at the same time good health can enable a person to work hard to increase productivity (Hill 2014). Demand curve Demand curves are curves that show a relationship between the...
2 Pages(500 words)Coursework

Macro economics

...UK Economy For every country to grow economically, it is important to increase the capa of the goods and services produced in that country. The UK can grow its economy by producing more and increasing its exports in order to boost its net trade. By reducing on imports and increasing the exports, the UK will be in a position to reduce its trade deficit, which is a problem that has been hurting the economy for many years. When the UK increases its share of exports, it will be in a position to grow its local industries. This is because the increased demand for UK exports accelerates local production, and this helps grow local products and jobs. For instance, this will help boost the manufacturing sector which has faced competition... cheaper...
2 Pages(500 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Macro economics for FREE!

Contact Us