Economics How Macroeconomics Changed The World - 1420 Words

Elif Yazici January 12, 2016 How Macroeconomics Came to Be Economy holds great importance in our lives when it comes analyzing how money functions overall, what employment really means, and what kind of fluctuations affect the world we live in. It encompasses a great wealth of knowledge that allows us to understand and make sense of many occurrences and events in the world. Before delving into the details, this paper showcases the history behind how macroeconomics came into being and the main aspects of it. Macroeconomics consists of theories that encompass a larger-scale viewpoint of economy, such as interest rates, and productivity. The first work of achievement that spoke out on the topic of macroeconomics was a Scottish economist name David Hume. In his famous works, he spoke out against mercantilism, which was common in the years of 1450s to 1750s. Colbert and Robert Cantillion founded mercantilism during the reign of England’s Queen Elizabeth II. According to mercantilism, a country’s wealth is measured by the amount of gold and silver reserves. The more reserves a country has, the more successful they will be when it comes to war. Thus, they put a heavy emphasis on exports, and imports were disregarded, asides from raw materials. Population and business growth was also encouraged. However, David Hume put forth some arguments that deteriorated the theory of mercantilism. According to him, if a country’s gold and silver stocks increase, the price of th e goodsShow MoreRelatedNarrative Interview : The Global Economic Climate During The 2008 Global Financial Crisis ( Gfc )1083 Words   |  5 Pagesinterview, I have selected my father, James Trainor as the ideal candidate to provide a comprehensive recount of the global economic climate during the 2008 Global Financial Crisis (GFC). 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