In the latest economics Today the macro view has become the mainstream view and it is not surprising that there are so many books that deal specifically with the macro view. This new view of economics that focuses on the international market, and not only on the domestic market, has become very popular in recent years, perhaps because of globalization and trade issues.
Many people are familiar with the micro view of economics that was first formulated by Irving Fisher, but most people have never heard of the macro view. The macro view, in general, deals with business cycles. It focuses on how economic activity affects the business cycle. There is a close connection between the different phases of an economic cycle and this helps explain why it is called the macro view.
It is very difficult to break away from the micro view of economics, because it is so intertwined. Most people think of the macro view as a type of economics 101 course. They will probably think that economics is all about interest rates, inflation, fiscal policy and unemployment. Unfortunately, that is not all there is. When the government decides that it wants to spend money, then it affects the amount of money that the economy is producing. If it wants to spend more money, the economy must produce less money in order to cover that expense.
There are other ways that the macro view is more closely related to the micro view. For example, the Federal Reserve is concerned primarily with inflation and how it affects the economy, whereas when it is dealing with a financial crisis it is primarily concerned with what has happened and where it is going.
Many people believe that the macro view is not necessarily a bad thing and that it helps us to better understand the economy, but they often fail to realize that it is a very complex system and there are so many things that we can't understand from a simple economic perspective. Many of these problems are outside of our control and it makes it much easier for some of them to be avoided, while others are unavoidable.
However, it is important to recognize that there are some things that the macro view can help us understand and some things that the micro view can help us understand. We need to be able to look at both sides of an issue before we can come up with a complete solution. I am sure that this will be a topic that is discussed in future articles and in future editions of the Economics Today.