Research Overview: Macroeconomics and Policymaking
Introduction
Definitively, macroeconomics is an economics component focusing on the decision-making, structure, performance and behavior of an economy in its entirety. To this end, this branch of economics pays particular attention to the economics of a nation, region and the whole world. Just like the mother group economy, macroeconomics features various concepts including output and income, unemployment, and inflation and deflation. In charge of controlling this collection of thoughts are three primary models: aggregate demand-aggregate supply, IS-LM and growth models. On the same note, this whole system depends on monetary, fiscal and comparison policies among others for its regulation. With that in mind, the following discussion seeks to delve into various concepts in macroeconomics. To do this, we will summarize, evaluate and analyze three articles, then discuss the interconnection between them and the entire field of macroeconomics.
Detailed Summary and Discussion of the Articles
The Evolution of Economic Policy Making in Africa. According to Jerome Wolgin, since 1983[1] African countries have been involved in an economic structural adjustment process. With the help from the political sector, a range of policy reforms such as foreign trade regimes, privatization, liberalization of foreign exchange and reduction of budget deficits have taken center stage over the years. This article concentrates on the obstacles of economic policy reform in the sub-Saharan Africa and various lessons that are evident from such transformations. Historically, most countries in this part of Africa were facing a steep economic decline in the 20th c[2] entury. After struggling with negative per capita and a GDP fall, it was time to take action. However, to fulfill such a quest, various causes of the economic meltdown had to be identified. As it would later emerge, most of the countries emphasized on nation building at the expense of economic growth. Besides, the political leaders at that time embraced socialism and building their political clout rather than continuing the development earlier started by the colonialists. Finally, the colonialists had put stable mechanisms to ensure a constant flow of resources to their origins draining the countries of their national resources.
Besides, a myriad of drawbacks also ganged up to thwart any rational policymaking efforts. The primary obstacle, in this case, was misplaced ideologies. Market distrust and upholding of the state as the sole agent of change were some of the weights that pulled the African economy down the slopes. Secondly, interest groups also enjoined to deprive African nations of their much needed economic upsurge. Political groups, labor unions, and bureaucrats pre-adjusted the policies for selfish reasons. Thirdly, policy-making also suffered setbacks due to ignorance. The key players in the policy making at this time- political leaders- plagued this noble course with myths, misconceptions and miscomprehension of the most fundamental facts hindering a positive change. Fourthly, political risk features at the center of this quagmire. Current leaders already prepositioned themselves for a longer stay in offices and would not allow any policy they deemed a hindrance to their political ambitions. Finally, political liberalization also played a vital part in obstructing the course of rational policymaking. Even though it set a firm foundation for long-term institutional policymaking, it weakened short-term policy implementation ability.