MACROECONOMICS

Macroeconomics



Executive Summary

In this study, we try to explore the concept of Macroeconomics in a holistic context. The main focus of the paper is on International economic forces, global economic growth, and economic growth in Europe after WWII. The paper also analyzes many aspects of global economic growth in Macroeconomics. Finally, the paper describes various factors which are responsible for International economic forces, global economic growth and tries to describe the overall effect on Macroeconomics.

Table of Contents

Executive Summaryii

Introduction1

Post-Recession Recovery3

Impact Aggregate Demand and Supply of Policy4

History of Economic Growth in Europe after World War II5

Polices and Challenges for Europe6

Economic Growth Models7

Dependent Development9

IMF and Its Role10

References11

Macroeconomics

Question 1

Introduction

Economic organisation work to stabilize the economic growth of the countries. A number of international economic organisations such as World Bank, IMF, and WTO, and international political organisations such as the United Nations provide a distinctive support to countries in various economic domains. The need for an organisation like the IMF became evident during the Great Depression that hit the world economy in the early thirties of 21st century. Economic depression resulted in creating a devastating impact to all forms of economic life. Banks failed by the millions, investment went astray, depositors lost the value of money, land values ??fall down, factories stood idle, and millions of workers walked lost their jobs due to economic instability and economic crunch (Hobsbawm, 1968, 91-94). IMF promotes international monetary cooperation to provide a mechanism for consultation and cooperation on monetary issues.

The prospects for international economic factors for economic growth and political development in dependent countries are thus grim. Since developing countries are relegated to an exploitative system in which production is limited to raw materials and unfinished goods, ruled by elites with a vested interest in maintaining the status quo, and dominated by a core with a vested interest in ensuring it stays that way, development is unlikely. Thus, dependentistas argue, if countries in the periphery cannot develop while participating in the international capitalist economic system, they must withdraw from it. In essence, if the rules of the game are biased against you, then you have two choices: to continue to play by the rules and thus continue to be exploited or to rewrite the rules in a way that does not leave you at an unfair disadvantage. Absent significant changes, the periphery is essentially doomed to continued economic and political dependence. The solution is to remove the periphery from the exploitative capitalist system by creating a competing economic order either with or without full-scale socialist revolution (Helpman, 2004, 101-114).

American being the super economy of the world initiated a cooperation scheme after global depression and World War II to create an international forum for managing the economic and social development constituencies. American financial and economic analysis directorate agencies focused on developing an integrated structure that would support the development of global economic system in the form of World Bank, United Nations, and IMF.

Monetary and fiscal constraint offset the inflationary impact of the currency devaluation to reduce the rate from 36% in ...