Quotes About Macroeconomics

Interest rates are used to achieve overall economic stability.

No one thinks of controlling inflation of a continental-sized country by holding back municipal tariffs. Macroeconomic stability cannot be achieved through microeconomic intervention.

We need to take the country in the right direction, whether it is around administrative policy decisions or legislative changes or ensuring the macroeconomic stability.

Deficits do not in themselves produce inflation, nor does a balanced budget assure a stable price level.

Inflation is lower and more stable and the real business cycle fluctuations are more modest.

In 2006, the global economy was doing well. In India, the political and economic situation was stable. All key macroeconomic indicators reflected an economy that was in robust good health.

Low and stable inflation in many countries is an important accomplishment that will continue to bring significant benefits.

One grave and fundamental Keynesian error is to persist in regarding the interest rate as a contract rate on loans instead of the price spreads between stages of production. The former, as we have seen, is only the reflection of the latter.

Byron Wien, for decades one of the most influential voices on Wall Street, taught Israel how to understand macroeconomic questions like the difference between gross national product and gross domestic product. The government had switched the leading economic indicator from GNP to GDP, Wien explained to Israel, as a way to make it seem that the economy was growing faster—official sleight of hand understood by very few.

When a population saves a lot, the funds are invested outside the country as well as inside. If the Japanese invest in the United States, it pushes their exchange rate down and makes their manufacturing more competitive.

Most work in macroeconomics in the past 30 years has been useless at best and harmful at worst.

In the 1960s, and stretching back to the 1930s, it was felt by many economists that easy money is a reliable way to increase employment.

Stronger productivity growth would tend to raise the average level of interest rates and, therefore, would provide the Federal Reserve with greater scope to ease monetary policy in the event of a recession.

And Milton Friedman was wrong: in the face of a really big shock, which pushes the economy into a liquidity trap, the central bank can't prevent a depression.

When the Fed raises or lowers interest rates, for instance, then that affects the entire economy. Contracts or expands it.

Today most of the debate on the cutting edge in macroeconomics would not call itself "Keynesian" or "monetarist" or any other label relating to a school of thought. The data are considered the ruling principle, and it is considered suspect to have too strong a loyalty to any particular model about the underlying structure of the economy.

If one sentence were to sum up the mechanism driving the Great Stagnation, it is this: Recent and current innovation is more geared to private goods than to public goods. That simple observation ties together the three major macroeconomic events of our time: growing income inequality, stagnant median income, and the financial crisis.

The higher interest and higher inflation is a vicious cycle.

Keynesian economics has always been needed.

Weirdly enough, I'm a macroeconomics enthusiast.

Whenever you save five shillings you put a man out of work for a day.

Monetary policy does not work like a scalpel but more like a sledgehammer.

Thus, increases in interest rates matter greatly for the economy as a whole. They not only cause direct reductions in investment spending and interest-sensitive consumption spending (the main intent of restrictive monetary policy), but they also may reduce aggregate demand indirectly through their impact on asset prices.

Countries that have strong pre-crisis macroeconomic metrics, rich natural resources and export-based industries have stronger recovery prospects from economic crisis.