The Macroeconomics Series (IV): Is unemployment really unavoidable?

Welcome back to the Macroeconomics Series! In this article, we are going to take a look at the last “big” concept that economists work with when handling macro: unemployment. We’ve talked about inflation and GDP, but the labour market is definitely closer to us (individuals) than the other two concepts, which I’m sure will make things easier to understand. After reading this article, you should be able to put together all the information available in previous entries and understand why things happen. Continue reading “The Macroeconomics Series (IV): Is unemployment really unavoidable?”

The Macroeconomics series (III): Inflation can be a friendly monster

In our last article, we talked about inflation, economic growth and how output changes over time. We finished the article by saying that “inflation is not a bad thing in itself”; it is now time to explain why inflation can be good for the economy. This won’t take long, so let’s get started! Continue reading “The Macroeconomics series (III): Inflation can be a friendly monster”

The Macroeconomics Series (II): Inflation and growth

Our first article in this series on macroeconomics covered GDP (Gross Domestic Product). We made a distinction between nominal GDP and real GDP based on the effects of increasing or decreasing prices. Today, we are going to expand on that topic: this article will introduce you to inflation and growth. Continue reading “The Macroeconomics Series (II): Inflation and growth”

The Macroeconomics Series (I): Real GDP matters

Big figures sound scary. Our governments spend billions of euros/dollars/you name it every year in lots of different things. You might even know a few things about GDP, deficit and a vast array of terms related to economics in general. In this series, my aim is to make it easier for everyone to get a grasp of macroeconomics. So, fasten your seat belts and get ready to learn! Continue reading “The Macroeconomics Series (I): Real GDP matters”

Understanding economic bubbles: Where are we heading?

Economic cycles are one of the most, if not the most, important things we need to know when studying all kinds of economic phenomena. They lead our behavior and our expectations, and can help us make important decisions in advance. Right now, we’re trying to get out of the “Great Recession” via expansive monetary policy and budgetary austerity. What should come after the end of the recession is… well, another 10 years of expansion! Does it sound easy? It isn’t 🙁 Continue reading “Understanding economic bubbles: Where are we heading?”