I. Definition of Macroeconomics Ragnar Frisch, a Norwegian economist coined and used the term microeconomics and macroeconomics in 1933. Micro and macro were derived from Greek words micros meaning small and macros meaning large. Economists Rudiger Dornbusch, Stanley Fischer state that “ Macroeconomics is concerned with the behavior of the economy as a whole – with booms and recessions, the economy’s total output of goods and services and the growth of output, the rates of inflation and unemployment
ROLE OF MONEY IN MACROECONOMICS 1. Introduction Money buys goods and goods buy money; but goods do not buy goods. −Robert W. Clower (1967). Money can be seen as the medium of exchange which is acceptable while transaction is being undertaken between two parties. Thus it can be used to buy any good directly, if one goes by the rules. Some of the common forms of money are: - Commodity
of the stock markets to international investors, regulatory power of SEBI, trading in derivatives, etc. These measures have resulted in significant improvements in the size and depth of stock markets in India and they are beginning to play their due role. Presently, the movement in stock market in India is viewed and analyzed carefully by large number of global players. Understanding macro dynamics of Indian stock market may be useful for policy makers, traders and investors. Results may reveal whether
between March and July 2011, as pre-emptive measures to manage foreign capital inflows by the significant accumulation of liquidity. The increase of liquidity in the domestic financial system must be managed carefully, in order to reduce the risk of macroeconomic and
much investment, market structures changes. Fluctuations and volatility in GDP and other key macroeconomic variables is a serious restriction on development which makes planning more challenging and makes investment more uncertain and risky. Developing countries generally suffer from a high degree of uncertainty as compared to the developed countries because the GDP growth, exchange rate and other macroeconomic indicators are more volatile in developing countries. The consequences of this volatility
country’s economy. It is the number calculated by consolidation of total expenses of government, money spent by business, private consumption and exports of the country. Increment in GDP indicates economic growth. Foreign investors get attracted towards the countries with economically strong countries with good GDP. It leads to better valuation of the currency of the country because more and more money comes to the country. POLITICAL STABILITY AND ECONOMIC PERFORMANCE Countries with stable government
Research tittle Investigating impact of macroeconomics variable on stock market performance, a case study from Pakistan. Introduction A well operating stock market improves the savings and promotes the Investment projects. The major function of stock market is to facilitate both savers and borrowers. It promotes savings from a large pool of small savers and help them to invest the funds in a healthy investment. The stock market coordinate with both seller and buyer. A branch of economics which
Microeconomics vs. Macroesconomics. There is simple distinction between microeconomics and macroeconomics. Microeconomics studies the economy of individual, group or organizational level. However, macroeconomics studies a national economy at all. Let’s look, to the table which shows the difference between microeconomics and macroeconomics. Microeconomics Macroeconomics It connects to the decision-making of individual economic elements such as demand, prices, consumers. It connects
introductory chapter for explaining an overview of the research topic which is the effect of macroeconomic variables on Malaysia stock market. This paper will examine the relationship between stock market return and selected macroeconomic variable such as MS, ER, IR and COP in Malaysia. This study aims to investigate the monthly movement of KLCI stock returns which is influenced by selected macroeconomic variables in Malaysia. This chapter will cover seven subsection which included background of
stock market is one of the important part of an economy. This is because, stock market is the place where shares of publicly held companies are traded through over-the counter-market or through exchanges and issued. Stock market plays a important roles for the market, industry, and also for the investors that wants to gain maximum return on savings. Besides that, stock market also uses as the measurement tools that provided information about the industry growth as well as the stability of the economy