Macro-Economic Policies

Macroeconomics is the branch of economics that deals with the overall functioning of the economy. Macroeconomic policies are critical in shaping the landscape within which factor markets (such as labor and capital) and product markets (such as shoes, cars, or bread) operate. They have a critical influence on decisions by companies to produce, hire or fire workers, or export and import goods, for example. They also determine household decisions to consume, save, and borrow, and government decisions to invest in infrastructure, education, and many other aspects of development.

AACS Consulting considers the following sections in providing macroeconomic policies for post-conflict governments and organizations:

The primary goal of effective macroeconomic policies is to reduce uncertainty and risk in economic decision-making. A stable macro-economic environment enhances prospects for growth and improved living standards. However, stability is not the only concern: these policies also have an essential impact on how income is distributed across economic classes and generations.

  • Taxes;
  • Government spending and borrowing;
  • Exchange rate determinants; and
  • Monetary and credit rules.
Macro-Economic Policies