Macroeconomics Essay Example | Topics and Well Written Essays - 1500 words - 5

Macro economics - rise Examples New Zealands low rate of unemployment related to its slow economic egress, or is the low rate of unemployment related to its high rate of inflation? Is tight monetary policy bestow to the slow economic growth of the country? Is the high inflation contributing to low economic growth? These and many other questions remain unanswered.This paper aims at providing answers to the above questions. The paper intends to do this by fabrication relevant information on unemployment, economic growth, inflation and monetary policy in New Zealand and tax it in relation to relevant theories so as to gain a reasonable basis for explaining apparent controversies identified above. The rest of the paper is organised as follows section 2 provides information on economic growth, inflation, unemployment, monetary and fiscal policies in New Zealand Section 3 provides a discussion of the facts outlined in section 2 in relation to relevant economic theories and section 4 p rovides some conclusions and recommendations. consort to Evans et al. (1996) New Zealand launched into a sequence of economic reforms following a constitutional and foreign exchange crisis in 1984. These reforms have been described by David Henderson (1995) cited by Evans et al. (1996) as one of the most notable episodes of liberalisation that invoice has to offer. The economic reforms included macroeconomic stabilisation and structural change.According to the OECD (2007) New Zealand began economic reforms 2 decades ago, which have laid the foundations for entrepreneurship and innovation in the country. The country maintains a well functioning product market, as well as a flexible labour market. In addition, the economy has been very open. (OECD, 2007). New Zealand as well as maintains world-class Public research organisations in many areas, especially in education and health. (OECD, 2007).Despite these compulsory aspects of the economy, the country has failed to maintain record levels of economic