The global trade decline in the 1940s had some negative impacts. The living standards of people fell, and unemployment became a chronic issue. Because of this, there was a need to create international organizations to oversee economic relationships among countries….

Globalization is the interaction and integration of individuals, organizations, and governments on a global scale. It is characterized by the cross-border movement of goods, information, employment, and culture. Globalization allows businesses to find the most optimal inputs for their products,…

Geopolitics examines how geography influences national and international relations. Analysts in this field examine actors, including individuals, organizations, companies, and national governments, that engage in political, economic, and financial activities and their interactions. State and Non-State Actors The two main…

Monetary and fiscal policies are tools used to influence the broader economy. However, the effectiveness of monetary policy on aggregate demand can vary based on the fiscal policy in place and vice versa. Even though both policies can influence aggregate…

The central bank of any nation worldwide is responsible for managing the country’s monetary policy. They also often have the responsibility of maintaining price stability and inflation. Central banks need to have the significant qualities highlighted below to be more…

Central banks implement the monetary policy using a number of instruments. These affect the aggregate demand through the supply of money, cost of money, and credit availability. The three main tools central banks use to implement monetary policies are open…

Objectives of Central Banks The main objective of a central bank is to maintain price stability. Depending on the country, central banks might have other objectives, such as controlling inflation, unemployment, interest rates, or exchange rates. However, all these objectives…

Recall that fiscal policy refers to all the methods used by a government to influence the economy through tax rates and government expenditures. For example, a government may decide to reduce taxes. These moves should, in theory, stimulate the economy…

The government possesses two major fiscal tools for influencing the economy. These tools can be divided into spending tools and revenue tools. Spending tools refer to the overall government spending. On the other hand, revenue tools refer to taxes collected…

Roles and Objectives of Fiscal Policies The primary goal of the fiscal policy is to control the economy of a given country by influencing the aggregate national output, which is basically real GDP. Fiscal Policy and Aggregate Demand Aggregate demand…