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Modern Macroeconomics /(Acc: 5616)

by Michael, Parkin
Additional authors: Bade, Robin.
Edition statement:5th ed. Published by : Prentice Hall, (Canada :) Physical details: xix, 587 p. : ill. ; 24 cm. ISBN:9780130157713. Year: 2001 Item type: Sustainable Development
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The future is always uncertain. But at some times, and now is one such time, the range of possible futures is enormous. The major sources of this uncertainty are economic policy and global macroeconomic forces. There is uncertainty about the way in which international trade policy will evolve as bilateral deals reshape the competitive landscape. There is uncertainty about exchange rate policy as currency fluctuations bring changes in international relative prices. There is extraordinary uncertainty about monetary policy with the Bank of Canada holding interest rates at historical lows in an attempt to stimulate a flagging economy. And there is uncertainty about fiscal policy as provincial budget deficits interacting with an aging population are ever harder to control. In the global economy, there is uncertainty about when, or even whether, a stagnating European economy will start to show life. And there is uncertainty about how fast China, India, and other developing economies will grow.

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