The Economics of Micro Issues is a series of related short, informative books that spark lively conversations and independent thought on the most important issues in the economic arena. It is by far the best place to go for quick, easy-to-read information about any issue in economics.
It is important that the reader of the Economics of Micro Issues gets the basics of economics down before delving into more specialized, detailed studies of micro-issues such as money, interest, credit, government spending, labor markets, unemployment, taxation, and the like. For those who wish to understand economics better, a quick look at these five topics may be a good place to start.
Interest Rates: The rate of interest is often described as “the price we pay for money.” Economists agree that interest rates, in particular, are the central determinant of the price of money. If interest rates are high, we pay more for a dollar, and vice versa.
Money and Banking: Money and banking are both part of the economics of micro issues. Most Americans have heard of money: paper or coins. However, many, if not most, Americans have no experience with banking. Banks are where money is deposited for safe-keeping and in which one can borrow money (credit). Without money, banking would not exist; nor would loans.
Credit: There are many types of credit, and they are not all created equal. Most of us have good credit, while others have bad credit. For example, many consumers have credit card debt that they would like to get rid of. However, it would not be easy to obtain a loan for their debt. A bank, however, can grant a loan to the debtor, thereby eliminating their debt. This type of credit, therefore, is another economics of macro issue.
The economics of macro issues are also important because they illustrate how interest rates affect the economy. Interest rates affect the prices of goods and services, and the supply and demand of those goods and services. A high interest rate will make things more expensive and vice versa. High interest rates can also stimulate borrowing, especially for businesses.
In addition to the topics that the economics of macro issues covers, there is also a broad category known as the micro-issue. These micro-issue categories include such matters as unemployment, inflation, consumer spending, credit, and trade.
To summarize, then, the economics of macro issues are the general areas that the study of the world economy encompasses. These areas include the fundamentals of money, banking, interest rates, the role of the Federal Reserve, government spending, and trade, and so forth.
In summary, then, when someone is looking for information on economics of macro issues, they need to look at these five basic areas to gain an understanding of how the macro and micro issues interact with each other. This overview can be helpful, but is by no means a complete description of the topic.