Macroeconomics for the Global Economy
Question:-What are five macroeconomic goals?
The five main macroeconomic goals are highlighted below (Koutsoyiannis, 2013).
- Non-inflationary Growth – It is essential that the policymakers and central bank should aim for a sustainable growth which is not fuelled by inflation. A inflationary growth quite often is not sustainable due to overheating of the economy.
- Low Inflation – A high inflation tends to lead to lowering of the real value of money besides increasing the price of various goods and services. A high inflation hinders growth especially in the long term and hence central banks tend to have their inflation targets which they aim to achieve through monetary policy.
- Full Employment/Low Unemployment – In order to maximise the use of labour resources available, it is essential that ideally all the people who are willing to work should be provided jobs in line with their skill sets. Practically, full employment is not reached and hence policymakers and central bank should target natural unemployment rate.
(I.C. RS 7572)