Economic Growth and Macroeconomic Dynamics

The relationship among inflation, unemployment, and economic growth can be treated as a trade-off in general. When the economy is in recession, inflationary pressures are expected to decrease while unemployment is increasing. On the contrary, a decrease is expected while inflationary pressures are rising. Thus the relation between these twin macroeconomic variables and their relation to economic growth are a focal point for developing countries. The aim of this study is analyzing the relationship among unemployment, inflation, and economic growth in Turkey by alternative methods. Thus the causality among these variables is tested with modified Wald statistic developed by Toda-Yamamoto. Findings obtained from causality test will provide policy recommendations for Turkish economy on a macroeconomic level.

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Providing complimentarity for the main components of macroeconomic dynamics

Ekonomìčna teorìâ ◽

10.15407/etet2020.04.078 ◽

2020 ◽

Vol 2020 (4) ◽

pp. 78-98

Author(s):

Oleksandr Bandura ◽

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Keyword(s):

Economic Growth ◽

Monetary Policy ◽

Central Banks ◽

Maximum Efficiency ◽

Quantitative Criterion ◽

Macroeconomic Dynamics ◽

Macroeconomic Indicators ◽

History Of ◽

Main Components ◽

Integrated Indicators

We propose a new way to provide complementarities of main macroeconomic indicators — economic growth, employment and inflation. It is shown at the example of monetary policy of world’s main central banks that, while officially the banks mainly have one purpose mandate, which is inflation (except of the U.S. where the central bank are officially to control both inflation and employment, unofficially they try to control all three main macroeconomic values, to provide their complementarities. It is difficult to provide complementarities of three main macroeconomic indicators in the absence of an economic model that connects both the three integrated indicators, and numerous intermediate ones, which determine each of the three main indicators. Finally, choice of any regulation instrument is determined by the model chosen by regulator to provide interconnection between integrated values and intermediate indicators. Analyzing the history of monetary policy for world’s main central banks, we revealed changing efficiency for their regulation instruments in terms of their effect on economic growth, employment and inflation. It varies from maximum efficiency in the optimum point in time to minimum efficiency, which requires a change of the regulation instrument for a new one to provide a more stable and forecastable cause-result connection between final and intermediate indicators. At the base of author’s CMI-model of macroeconomic dynamics we grounded the formula that connects as three main macroeconomic values so numerous intermediate indicators. It allows us, targeting only one integrated indicator (cumulative market imperfections) to control economic growth, employment and inflation at the same time. For that purpose we can chose all possible instruments both of monetary policy and of other policies (fiscal, antitrust, innovation ones etc.). Besides, we would be able to control efficiency of the action of the applied regulation instruments on the main macroeconomic indicators to determine the quantitative criterion of optimum efficiency for regulation instruments.

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Modelling the Impact of Institutional Environment on Key Macroeconomic Indicators

International Journal of Engineering and Advanced Technology - Regular Issue ◽

10.35940/ijeat.a2133.109119 ◽

2019 ◽

Vol 9 (1) ◽

pp. 6957-6963

Keyword(s):

Economic Growth ◽

Institutional Environment ◽

Institutional Development ◽

Point Of View ◽

Institutional Factors ◽

Macroeconomic Dynamics ◽

Institutional Variables ◽

Macroeconomic Indicators ◽

Main Components ◽

The Impact

The characteristics of the dynamics of the main macroeconomic indicators are important indicators of the state and prospects of the country's economy as a whole. Interest in the study of macroeconomic dynamics is ensured by the uneven growth rates of the main macroeconomic indicators (GDP, consumption, investment) of different countries, as well as the growing lag of the poorest regions of the world from the leading ones in terms of economic development. Existing studies do not fully explain the differences in the behavior of macroeconomic indicators in countries whose economies are comparable for most of the fundamental factors considered. Recently, institutional factors have been used to explain these differences. The insufficient level of development of institutions limits economic growth; this problem is especially relevant in modern countries. Part of the resources is spent on protecting property rights, on overcoming barriers associated with corruption. To overcome the lag in institutional development, it is necessary to identify the mechanism of the influence of institutional parameters on macroeconomic indicators and assess the feasibility of improving various institutions from the point of view of further economic growth. The proposed approach to forecasting macroeconomic indicators taking into account the main components of the group of institutional variables can be applied directly in the process of building forecasts. It is also worth noting the proposed method of testing the hypothesis of a better forecast, which allows you to get results that are independent of the specification of the model.

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ECONOMIC GROWTH AND MACROECONOMIC DYNAMICS IN NIGERIA

Review of Innovation and Competitiveness ◽

10.32728/ric.2018.43/4 ◽

2018 ◽

Vol 4 (3) ◽

pp. 93-114

Author(s):

Babatunde Solomon Johnson ◽

Adegbemi Babatunde Onakoya ◽

Olufemi Akeju

Keyword(s):

Economic Growth ◽

Macroeconomic Dynamics

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Major Macroeconomic Dynamics for Labor Market in Turkey

Handbook of Research on Unemployment and Labor Market Sustainability in the Era of Globalization - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-5225-2008-5.ch017 ◽

2017 ◽

pp. 307-320

Author(s):

Mustafa Karabacak ◽

Oytun Meçik

Keyword(s):

Economic Growth ◽

Focal Point ◽

Alternative Methods ◽

Policy Recommendations ◽

Causality Test ◽

Macroeconomic Dynamics ◽

Trade Off ◽

Macroeconomic Variables ◽

Turkish Economy ◽

The Relationship

The relationship among inflation, unemployment, and economic growth can be treated as a trade-off in general. When the economy is in recession, inflationary pressures are expected to decrease while unemployment is increasing. On the contrary, a decrease is expected while inflationary pressures are rising. Thus the relation between these twin macroeconomic variables and their relation to economic growth are a focal point for developing countries. The aim of this study is analyzing the relationship among unemployment, inflation, and economic growth in Turkey by alternative methods. Thus the causality among these variables is tested with modified Wald statistic developed by Toda-Yamamoto. Findings obtained from causality test will provide policy recommendations for Turkish economy on a macroeconomic level.

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Evolution Of “Rules Of The Game”, Macroeconomic Dynamics And Reform Policy

Economic Themes ◽

10.1515/ethemes-2014-0029 ◽

2014 ◽

Vol 52 (4) ◽

pp. 480-497

Author(s):

Zoran Stefanović

Keyword(s):

Economic Growth ◽

Reform Process ◽

Macroeconomic Dynamics ◽

Economic Changes ◽

Theoretical Concepts ◽

Institutional Structures ◽

Current Reform ◽

The Impact ◽

The Relationship ◽

Rules Of The Game

AbstractThe impact of institutional arrangements, the “rules of the game”, in terms of Douglass North’s definition, on macroeconomic dynamics has been largely detected in the economic-historical records. However, clarification of the nature of institutional currents and their relationship with the paths of economic growth is a challenge for contemporary economic theory. The paper will present a retrospective of the conceptualization of institutional change as a process that mimics the evolutionary systems, relying on relevant theoretical concepts and selective empirical material that is contained herein. In this sense, the paper gives insight into the important contributions reflecting on the relationship between instiutions and economic growth, the evolutionary theory of socio-economic changes and their possible implications for the current reform process. Total of argumentation offered in the paper indicates stability and inertia of institutional structures, whose dynamics is prone to path dependency. Insisting on universal reform solutions, neutral with respect to local circumstances in the process of stimulating economic growth, turns out to be ineffective.

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