Friday 11 December 2015

Today is the best time to study macroeconomics

Studying macroeconomics sometimes is like studying history that we use past examples to study and analyze our models. However, nowadays we have so many economic events going on at the moment. Especially when the central banks across the world face the same global economy, but choose to take different actions. The ECB chooses to push its rates to negative, the BoE and the Swiss National Bank chooses to maintain their current rates, while the US Fed is likely to raise rates later this month. Although these central banks have different domestic economic problems, the exogenous effects could be large enough to impact their domestic economies in the same way. Therefore, we can study which central bank policy is the best way to deal with the current global economic problem.

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