MACROECONOMICS

Macroeconomics for Business

Introduction1

United Kingdom1

Greece1

Discussion2

Comparison of Economic Success of United Kingdom and Greece2

GDP Comparison2

Unemployment and Employment Rate3

Inflation Rate and Consumer Price Index3

Interest Rate4

Balance of Trade4

External Debt5

Consumer Spending5

Main Government Policies Pursued and Their Impact5

Monetary Policy of United Kingdom5

Monetary Policy of Greece6

Fiscal Policy of United Kingdom8

Fiscal Policy of Greece9

Conclusion10

References11

Statistical Appendix13

Macroeconomics for Business

Introduction

This assignment is focused on making a comparison between the macroeconomics of business in United Kingdom and Greece. In order to make the comparison an introduction to both the countries is given below:

United Kingdom

The United Kingdom is the official name of the United Kingdom of Northern Ireland and Great Britain. It has four different countries which are Scotland, England, Northern Ireland and Wales; that have been united under a single government and monarch. Every country has its own culture and the Northern Ireland wants to be separated from United Kingdom and join Republic of Ireland. The United Kingdom is a parliamentary democracy having a constitutional monarch. It does not have a single constitution; the British constitution consists of case law, international trade and the statute law (www.expatica.co.uk).

Greece

Greece is located between the Middle East and the mainland of Europe. There are many state agencies which are supervised by the Ministry of Economy that have the responsibility of handling various aspects of finance programs and the government for the economic development. A main part of economic activity of the country is dominated by the state-owned corporations. They have a control over airline, railway, postal services, natural resources, sugar industry and the ammunition and arms manufacturing. The private businesses are mostly small. The government policy in the last decade has focused on keeping the unemployment low along with resolving the issue of investment stagnation. This caused the expansion of the public sector which also placed a huge burden on the economy. Recent the government policies have focused on introducing austerity budgets to create a barrier to the public spending and rationalizing the public debt. After the convergence with European Union and the inclusion in the euro zone, the goal of the government is to focus on keeping unemployment and inflation at lower levels, reducing the size of public sector through privatization and the funding of private investments (www.bhcc.gr).

Discussion

Comparison of Economic Success of United Kingdom and Greece

GDP Comparison

The GDP per capita of United Kingdom 18760.97 dollars whereas is GDP growth rate in 0.62 percent. The annual growth rate of GDP is 2.55 percent, the gross national product for United Kingdom is 127452.05 million pounds and its GDP is 892.22 billion dollars. On the other hand, the GDP per capita of Greece is 9348.3 dollars and its GDP growth rate is 0.46 percent while the annual growth rate of GDP is 0.52 percent. The GDP of Greece is 96.99 billion dollars.

On the basis of the GDP comparison of the Greece and United Kingdom, it can deduced that United Kingdom is more successful as its GDP per capita, GDP growth rate, GDP annual growth rate and GDP is higher as compared to ...