Macroeconomic Objectives

a non-comprehensive rush through a few

Stable economic growth
-growth assumed continguous with, and to indicate, improvement in livelihoods
-stable growth less volatile & more sustainable
-less-developed economies may be able to grow more rapidly without ‘shocking the system’: utilising previously-unused resources rather than excessively stressing existing ones

Low unemployment
-use of factors of production a sign of economic productivity, efficiency, and capacity.
-limits welfare strain upon government budgets

Low, steady, inflation
-sign of gradual growth
-high inflation generally associated with: dampened spending, reduced wellbeing, strained production (higher interest rates & costs of borrowing; uncertain demand; rising costs of production)

Sustainable government budget
-’sustainable’ subjective and influenced by political leanings / priorities
-overspending may put strain on future spending / ability to borrow (credit rating)

Healthy redistribution of income
-considerations of fairness and what is best for economic growth.
-Do higher taxes disincentivise productivity?
-Do higher taxes raise funds which finance government investment, which in turn boosts productivity / wellbeing / morivation / acceptable minimum standards of living

Long-run balance of payments
-healthy balance between spending upon international goods & services, and the money spent internationally upon domiciled goods and services
-conceptually: in the short-run a country may buy-in more than it provides, but in the long-run its economy may be drained if the outward flow of money consistently exceeds that which flows in

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