Macroeconomics as the Study of the World’s Economy

Subject: Economics
Pages: 2
Words: 305
Reading time:
2 min

Macroeconomics is best described as the study of the world’s economy as it considers and analyzes large-scale financial relations, general process and patterns of economic behaviour. Macroeconomics also studies the mechanisms of activity and interdependence of countries, regions, and large non-state actors in the global economy.


The entire science of economics in the world is conditionally divided into macroeconomics and microeconomics. The first type studies the functioning of the economy in the world, countries, supranational organizations and predicts changes in the financial sector. The second type explores the laws and principles of economic processes within companies and even at the level of individuals. The life of all people in the world depends on macroeconomic changes, their understanding and adjustment of the economic behaviour of countries, since states are the main actors of global interaction. The science of macroeconomics considers processes that entail changes at the national and global level, for example, the concepts of the economic cycle, the causes and effects of inflation and unemployment, and productivity factors. Besides, scientists can predict and manage change by using this knowledge to prevent crises.

Macroeconomics also tracks the interdependence of countries and is the basis for understanding trade and politics, which in the modern world are largely dependent on the economic situation of the state. This science also examines the impact of domestic and foreign policy on the processes in the country, and the influence of government on the growth of the economy or its decline. Macroeconomic knowledge ​​is closely related to microeconomics, since many processes are the same but at different scales. However, at the same time, the study on the world economy is more profound and more vital as it offers ways to ensure the stable development and prosperity of states without which any microeconomic actors can conduct its activities successfully.