Macroeconomics studies an overall economy or market system, its behaviors, the factors that drive it, and how to improve its performance.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Robert Kelly is managing director of XTS ...

The standard Blanchard-Quah (BQ) decomposition forces aggregate demand and supply shocks to be orthogonal. However, this assumption is problematic for a nation with an inflation target. The very ...

The author analyzes the inflation-targeting model that underlies recent textbook expositions of the aggregate demand—aggregate supply approach used in introductory courses in macroeconomics. He shows ...

What explains the sharp decline in U.S. employment from 2007 to 2009? Why has employment remained stubbornly low? Survey data from the National Federation of Independent Businesses show that the ...

The aggregate supply curve is a concept in macroeconomics that, with the addition of the aggregate demand curve, shows the equilibrium level of prices and quantity in an economy. It is also used to ...

It has been more than 80 years since the beginning of the Keynesian revolution in economics with the publication of John Maynard Keynes’ The General Theory of Employment, Interest, and Money in 1936.

It's tough enough for a small business to survive in a down economy, to say nothing of achieving hoped-for growth by opening additional locations, expanding a product line or targeting new markets.

I like Joe Stiglitz, both professionally and personally. His Globalization and its Discontents was virtually the only work by a Nobel Laureate economist that I cited favourably in my Debunking ...