ECON282 Lecture Notes - Lecture 1: Quantitative Easing, Fiscal Policy, Monetary Policy
23 Jul 2016
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Document Summary
Macroeconomics looks at the bigger picture like on a grander scale of a perhaps an entire country. Microeconomics looks at how individuals or firms behave. Short run looks at business cycle 2 -5 -10 years bubbles, booms. Long run decades or centuries smooth lines you are not looking at recessions. Labour productivity the key variable we look at! Monetary policy interest rates and money supply. Now central banks do more for example quantitative easing. The 2008 recession affected canada because of its close relationship with us. Internationally more connected through financial markets than just goods and services markets. Economic theory explains, while economic model provides a simple framework. Positive analysis what is it can be tested - we don"t say if it is a good thing or a bad thing. Just a discussion of what is going on. Normative analysis what should be cannot be tested - opinionated, subjective. You could debate but you can"t test it.
