How does macro-economic stabilisation assist growth, Business Economics

Assignment Help:

How does macro-economic stabilisation assist growth?

Economic agents as the consumers, private zone and overseas investors as like multi nationals make decisions based onto confidence and certainty. Inflation and exchange rate fluctuations make this complicated to plan ahead and decrease confidence into the economy. Investment therefore growth is decreased.
While governments deliver macro stability the domestic private zone and overseas investors have enhanced confidence, increased expectations and raise planned investment. FDI increase
Making sure macroeconomic stability implies

  • Balanced government budgets by tight fiscal policy as G=T and
  • Tight monetary policy to obtain low inflation.

 


Related Discussions:- How does macro-economic stabilisation assist growth

What is the washington consensus, What is the Washington Consensus? Th...

What is the Washington Consensus? The Washington Consensus is a set of polices arguments advocated through free market economists to motivate growth and it is at the heart of

Find the median voter eqm, In the model with utilities W i = c i + α l...

In the model with utilities W i = c i + α ln(x i ) where individuals are endowed with ability levels w p m R and form fractions π p , π m , π r with π m > π p , π r

How can the role of government in development be assessed, How can the role...

How can the role of government in development be assessed? Increasingly governments are judged through the outcome of their policies within achieving above average development

Demand & probality, Demand uncertainty, particularly in the fast fashion in...

Demand uncertainty, particularly in the fast fashion industry, is a significant factor. For this reason, María, the Supply Chain Manager of The Fast Fashion Group (FFG) has decided

Needs and wants, Nathan is a successful public relations (PR) consultant, t...

Nathan is a successful public relations (PR) consultant, thanks to an outgoing personality and sharp intelligence. At 35, he is near the height of his earnings potential, at around

What is social inclusion, What is social inclusion? Social Inclusion:...

What is social inclusion? Social Inclusion: Social inclusion implies the whole of society enjoys the advantages of economic activity (as income) and have complete access

Calculate the new money multiplier, The reserve requirement is 20%. Assumin...

The reserve requirement is 20%. Assuming banks have no desire to hold excess reserves, calculate the money multiplier. Now assume the banks want to hold 20% of their reserves in ad

Constraints facing governments in promotion of development, What are the co...

What are the constraints facing governments in the promotion of development? The constraints facing governments into the promotion of development: The capability of a govern

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd