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A nation represents an entire economy irrespective of its size. Everything – from the markets to the consumer base, business quality to government policies – constitutes the overall nation’s economy. The study of how these overall economies behave is referred to as Macroeconomics.
Some of most topics of discussion among the common people are issues like inflation, economic growth, unemployment, etc. Each of these key issues is addressed by macroeconomics.
Macroeconomics refers to analysing the economic system from a wider lens. It looks at various variables of the economy, and develops models to explain the relationship between these variables.
Government organisations use these models and the forecasts they provide to help develop and assess the economic and fiscal policy. Investors use simulations to forecast and prepare for moves in different asset classes, while businesses use them to establish strategies for domestic and international markets.
The study of macroeconomics is divided into numerous schools of thought, each with a unique perspective regarding the way the markets and the people who participate in the function.
Here are the most common ones –
Based on Adam Smith’s initial views, classical economists believed that costs, salaries, and taxes are flexible. They also believed that marketplaces tend to operate smoothly unless impeded by governmental interference.
The foundation of Keynesian economics, which established macroeconomics as a distinct field of study from microeconomics, was largely based on the writings of John Maynard Keynes.
According to Keynesian economists, fiscal policy can actively control the commercial cycle, in which governments increase spending during recessions to increase demand or cut spending during expansions to decrease it.
A subset of Keynesian economics known as the monetarist school is largely attributed to Milton Friedman’s writings. According to monetarists, monetary policy is typically a more desirable and effective tool for managing overall demand over fiscal policy.
According to the New Classical School, microeconomics and models built on it are important. In their macroeconomic models, New Classical economists integrate the presumption that all actors seek to maximise their worth and have reasonable expectations.
The New Keynesian School makes an additional effort to strengthen conventional Keynesian economic theories with a focus on microeconomics. Although New Keynesians acknowledge that businesses and people follow reasonable expectations, they continue to believe that there are a number of market failures, such as sticky prices and wages.
An ancient school of economics, the Austrian School, is experiencing some popularity growth. Austrian economic theories mostly cover microeconomic phenomena. They never strictly distinguished between micro and macroeconomics, just like the so-called classical economists.
|This studies the overall economy and its different factors.||These studies separate individual economical units.|
|It deals with factors like national output, national aggregate income, and the national price levels.||This focuses on issues like the allocation of different resources and the price discrimination.|
|This addresses variables like aggregate demand and an overall nation’s economic supply.||This addresses factors like demand and supply for an individual commodity.|
|Macroeconomics helps in figuring out the levels of achievable equilibrium regarding the employment of the nation.||It helps determine whether equilibrium can be achieved at a small scale.|
|This ensures the optimum utilisation of the available resources within a nation.||This gives a glimpse of the goods and services that are required for an efficient economy.|
|It only lays focus on the problems related to the component of income.||Microeconomics lays the limelight on all the issues that occur due to price variation and different income levels.|
Though very different from each other, both are also interdependent on each other.
A deeper comprehension of micro and macroeconomic variables can be analysed in all microeconomic studies. A study like this will support the creation of economic policies and initiatives. As is well known, both small- and large-scale factors that have the potential to influence or are directly impacted by one another play a role in economic changes and processes.
For example, it will be easier for us to analyse changes in the general level of prices for all goods in the economy if we understand the way the price of a commodity is set and what role the buyer and seller play in the process.
Now, to figure out the efficiency of an economy, we must first ascertain the behaviour of every component of the economy. To ascertain this performance, we must ascertain the behaviour of each segment of the economy either singly or in groups.
From here let’s move on to doing research on macroeconomics.
Any economics writing, be it macroeconomics or microeconomics, is different from any other type of writing. This is more technical, and clarity is the key to gaining extinguished grades. You have to make sure that the analysis is crystal clear, for only then the strength of the study will shine through.
Here is a general guideline for doing quality macroeconomics research –
Starting a research paper is the most difficult part. Once you start, you go on with the flow. But motivating yourself to start at the right time can be a bit difficult. But try starting with reading materials on macroeconomics. This way you are not doing much but yet taking a small step towards your research paper. While you read, make sure that you keep a note of the things you find important.
Getting the right structure for your research paper is very important. If you get the structure wrong, there is a high chance that your paper fails to achieve the required results. So, ask your professors for their opinion on the structure you have framed.
Economists use the opening sentences to frame the research questions and the model and information they will use to think about it. This framework guarantees that the writer and reader have a firm understanding of the subject and composition of the subsequent work.
Clarity is not very easy to achieve but is crucial to convey the proper message of your paper. For your reference here are a few ways in which you can ensure the clarity of your macroeconomics research paper –
Economic analysis is no more just about the economic theories. Today, it is more mathematical than it was ever before. This is why when you are trying to analyse data for economics research, make sure to pay keen attention to the mathematical calculations part, or it may result in wrong analysis and, thus, wrong results.
This section intends to tell you how to write a macroeconomics research paper perfectly. Here are the details –
There are countless methods for finding a topic. It’s possible that you are writing for a particular area of macroeconomics, in which case the themes are more constrained and simpler to choose. Make sure to choose a topic that intrigues you. Don’t forget to carve out a niche for yourself and contribute to the field.
Not just for macroeconomics but economics as a whole there can be two types of sources –
Empirical data is the one that is already in the numerical form or can be very easily translated into the same. At the same time, academic literature refers to books and articles written based on some significant economical theories and ideas and can help you organise your thoughts. But finding the right kind of sources for the research is very important. Take the help of your professor in case you have any confusion regarding finding the right sources.
The outline makes sure that you successfully achieve your goals. A general outline of a macroeconomics research paper is as follows –
The literature review lays the groundwork for your paper and shows that you are knowledgeable about academic research on the subject. You should clarify the specific concerns you intend to bring up, the vocabulary you’ll use, and the strategy you’ll use with reference to earlier academic publications.
When presenting a hypothesis, you must keep in mind that you also have to present the data set and discuss the type of regression you will run in the research paper.
In a macroeconomics paper, when you are presenting the results, you will have two major decisions to make –
Only focus on the very important portions and make sure to be extremely clear with what you want to say.
Now that you are well accustomed to writing a macroeconomic research paper, here are a few topics on which you can write a relevant macroeconomic research paper.
Answer: Fluctuations in the balance of payments, inflation, interest and foreign exchange rates, and economic production are major areas of macroeconomic research.
Answer: Three topics are the main emphasis of macroeconomics: national GDP, unemployed people, and inflation.
Answer: Macroeconomics examines broad economic aspects that have an impact on the entire population. As a result, macroeconomic decisions like setting interest rates and balancing a nation’s inflation with both its commerce and its foreign exchange rate must be made by policymakers.
Answer: The functioning of the financial system as a whole is a concern of macroeconomic policy. Macroeconomic policy’s overarching objective is to create a stable economic climate favourable to robust and long-term economic growth, which is essential for generating wealth, jobs, and higher living standards.
Answer: Three major challenges are –
Answer: It makes it possible to evaluate how well a system of economics has been managed and where it stands in relation to other economic systems.
Answer: Some significant theories are –
Answer: International capital flows have the benefit of raising overall demand. The interest rate would drop as a result of an increase in the amount of loanable capital accessible to the economy.
Answer: Macroeconomic indicators are as follows –
Answer: Market reports, commercial periodicals, scholarly journals, and government databases are some examples of sources. Searching or browsing for data by industry, topic, nation, digital market, or infographic is possible.