Macroeconomics

Monetary and Fiscal Policies – Meaning and Objectives

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No modern economy can function smoothly without effective macroeconomic policies. Among these, monetary policy and fiscal policy are the two most important tools that help governments and central banks manage economic growth, control inflation, reduce unemployment, and maintain financial stability. Understanding what these policies mean and what they aim to … read more

Schumpeter’s Innovation Theory of Trade Cycle

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The innovation theory of trade cycles is associated with the name of Joseph Schumpeter. Schumpeter accepts Juglar’s statement that “the cause of depression is prosperity,” and gives his own view about the originating cause of the cycle. “Innovations in the industrial and commercial organization are virtually mainly the outcome of … read more