Essays on Macroeconomic Essay
of the of the Concerned Macro & Micro Economics 15 December How Macroeconomics Helped Me?
It goes without saying that people mostly tend to share a very personal relationship with money and assets that makes their economic perceptions very limited and narrow. In actuality, in a pragmatic economic world nothing exists in isolation and it is mostly all about the aggregates like national investment, national income and collective consumption. Truly speaking, the study of macroeconomics in a methodical and systematic manner opened up my eyes to what may be called ‘the bigger picture approach’ towards economic issues.
Before, I had a very narrow approach towards economic issues because my vision was narrow and limited. I tried to grasp the economic issues just like I was traversing through a tunnel, with my analytical abilities dedicatedly focused on a micro level approach towards economic issues. However, as I entered the realm of macroeconomics, it broadened my horizons and now I approach the economic issues as if I am sitting in a helicopter, my vision able to look at a much larger picture where the individual factors mattered much less as compared to the interaction of the aggregate factors impacting the whole economies. I realized that macroeconomics was primarily about the study of national economies and the varied macro factors that determine the national incomes (Black 75). In other words the study of macroeconomics helped me graduate from a ‘tunnel vision’ approach towards economic issues to a much larger, expansive and holistic ‘helicopter vision’. It helped may use the skills I acquired while studying microeconomics to be able to make sense of much larger economic issues. For instance, if in microeconomics I learnt how the changes in interest rates impacted the household saving decisions, while studying macroeconomics I am now able to project this basic understanding on a much larger canvass to facilitate the understanding of bigger economic issues like how the changes in interest rates lead to alterations in the real GDP, or how price rise impacted the national consumption levels, or how currency fluctuations influenced the FDI in a national economy, or how tax rates determined the unemployment rate in an economy. Macroeconomics helped me understand the fact that though at a micro level the things may seem more graspable and clear, approaching the economic issues at a macro level facilitates a very different type of understanding, which in a way broadens and enhances the understanding achieved through a micro analysis of the economic issues. Macroeconomics helped me grasp as to what is or should be the aggregate result of the decisions taken by the individual economic units, and how aggregate factors influenced the decision making capacities of the individual economic units. Macroeconomics taught me to visualize and understand the working of an economy as a whole.
If microeconomics made me an astute householder, macroeconomics made me a mature economist and a capable economic visionary. It is an achievement that will certainly continue to influence me, throughout my life.
Black, John. A Dictionary of Economics. New York: Oxford University Press, 2003.