Free «Macroeconomic Situation Analysis» Essay Sample


Economics has great impact on human life. Economic segmentation happens into two categories macroeconomic and microeconomic. However, the large impact that effect people’s life is macroeconomic. Macroeconomics defines the monetary system of a county, however, controls the business at macro as well as micro level. Therefore macroeconomic situation is most important to be prosperous at micro level as well.

What is the "current macroeconomic situation" (e.g. worrying about inflation and/or recession) in the U.S.?

The prevailing economic situation in whole world is not good, specially U.S economic condition is at its worst level. Moreover, economic meltdown has been facing by United States of America since last two years. Recession and meltdown economic condition had has affected United States not only at macro level but also at the micro level. The affected sectors of the recession period are residential investment, housing finance, and stocks business. Inflation is one aspect that made the people worry about their living standards and make it hard to even sustain in their daily life. However, the recent monetary policies are particularly prepared to provide relief to the residential investment, stocks business and to strengthen the business. Monetary policy considered most to reverse the recession and supporting the business and finance not only at macro level but also at micro level.

What should the U.S. Congress and the Federal Reserve do about it?

The alarming situation always needs rapid solutions. In the prevailing U.S economic conditions first step that should be took by the congress and Federal Reserve is to implement the fiscal policy tools. It will ultimately ease the extra stress on the economic system to reducing the taxes and government spending. And the money reserved from it would be used into releasing the macroeconomic stress and creating more employment. The other way is easy money, the amount of money should be increased to be available in the market and to the people. It is usually made possible through bank loans and other monetary measure taken by the government by introducing public finance schemes. These measures can validate the right direction of the monetary policy to reduce the economic tension.


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