Investor Glossary-macroeconomicsInvestor Glossary-macroeconomicsInvestor Glossary-macroeconomicsInvestor Glossary-macroeconomicsInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


The HTML to link to this page

Macroeconomics is the study of the behavior of the overall economy. Thus macroeconomics focuses on broad-based indicators of national economic performance, like GDP output, balance of trade, and employment levels. Macroeconomics can be contrasted against microeconomics, which is the study of the economic behavior of the individual firm and consumer. Traditionally, in the United States the study of macroeconomics has had two main schools. Put simply, the Keynesian school of macroeconomics focuses on total demand and looks to both fiscal policy (government spending levels) and monetary policy (money supply growth) for solutions. The Monetarism school of macroeconomics rejects fiscal policy as a means of managing the economy and looks to monetary policy exclusively for answers. These major schools of macroeconomics have now developed offshoot and successor movements, such as New Keynesian Economics and New Classical Macroeconomics. Macroeconomics has major consequences for investors, as company earnings models are heavily dependent on growth in the overall economy, and bond (and, to a lesser extent, stock) prices are strongly determined by the level of interest rates.

Rate this macroeconomics definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: APR, required rate of return, in escrow, per diem, stock split, cancelled check, labor relations, liquidity ratio, inflation, 401a, limit order, risk management, Key Rate Duration, retained earnings, FICO score, quality assurance, 144a, real GDP, command economy, dividends payable, deferred revenue, class C shares, stock market close, deferred tax, balance sheet, reverse mortgage, phantom income, ex-dividend, option premium, LIBOR, annual return, debt service coverage, open position, 1035 exchange, current ratio, EBITDA, implied volatility, average price per share, wholly-owned subsidiary, Zero Cost Collar, irrevocable trust, ex-dividend date, FTSE, diluted share, covered put, minority interest, VIX, 1031 exchange, margin rate

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use