Micro vs Macro Economics

For a long time , it was felt that their was no need to have seperate branches of economics and what happens at individual level will always works at agregate level , for countries etc. But the great economic depression of 1929 changed all of that and micro economic solutions were inadequate for solving the pressing issues of unemployment , low wages and falling of big banks .

now its a clear notion that economics has two branches.

Micro economics - it focues on how individual consumers, firms etc makes decision and it also explain why and how different goods are valued differently. for example my this blog is valued at 0 rupee since its free and also how individuals make financial decison relating to saving and investment and how market works at micro level.

Macro economics : macroeconomics tries to explain the situation facing the whole nation. it is concerned with foreign trade, fiscal policy, monetary policy, unemployment rates, the level of inflation and interest rates etc.

inspite of all these differences both micro economics and macro economics are closely related.

Lalan Choudhary

Rank 72 BPSC 66th

Comments

Why Rupee and other Currencies are falling against dollar?

One of my friend asked this question to me on whatsapp very innocently and i thought what better then to explain it here so that other people also can benefit. if we see this graph we can see clearly that rupee is falling consistency against dollar . But this is not due to indian economy doing badly but is a global phenomenon due to inflation in usa , the central bank is tightening its grip and raising interest rates . This rise in interest rate is expected to continue so much that iMF's economic outlook has predicted year 2023 as year of recession . M Mm D Mmm9 Mmmmmzll Mmmmmmmmmmmmmmmmmmmmmmmmlmmmmmmmlmmmmmmmmmmlmlmmm I8,a As usa federal reserve is raising interest people are pulling their money called for9 eign portfolio investment from developing and poor countries to a safer bond market in usa , this raises demand for dollar. we also have a deficit in current account with rest of the world due to which we demand dollar , also t...

Purpose

Purpose of starting this blog Dear Readers, The main purpose of starting this blog is to share whatever little knowledge i have in a simple yet conceptually correct way to the readers. Here i will post the basics of economics to the readers. will try my best to maintain sequence and chronology , although current events might encourage me to break the sequence .

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