Question

Topic: exchange rate regime in developing countries (Russia and Kazakhstan)

Is it possible that analysis of country’s macroeconomics can be limited only at one country’s level? Why?

Answer 1

Macroeconomic is a branch of economics which studies the economy as a whole and three key features of it is national output, unemployment and inflation.

It is used by the government to stable the economy and by the central banks to make the monetary policies.

National output which refers to the GDP of a country which is the summation of consumption, government expenditure, investment and net export. It also tells that why recession occurs and how the economic expansion can be reached. How the international phenomenon affected country’s economic growth.

Recently it could be said that COVID-19 pandemic a global issue and it impacted the whole world’s GDP.

Currency fluctuation which occurs in an economy, the main reason of it is the appreciation or depreciation of a currency.

Though macroeconomic analysis the all over ups and downs in an economy but it can’t be measured only with the reasons which happens within the boundary in the country. Relationship with the other countries is also impacts the GDP of a country.

For another example, the recent US-china trade war resulted 9into shard decline of US-china trade and the global GDP which slowed down up to 0.7%. Turmoil was also seen in the stock market as well.