Macroeconomics examines the economic attributes of entire systems, focusing on performance, structure, behavior, and decision-making. Macroeconomists analyze aggregate changes by collecting data on unemployment, growth, inflation, income, saving, spending, and trade across regional, national, and international contexts. Policymakers rely on macroeconomic insights to make informed decisions regarding taxes, regulations, and trade policies, which in turn influence individual and business choices, particularly in a globalized economy. This entry in the Essential Knowledge series explores various topics, including GDP and its impact on welfare, the reasons behind differing growth rates among countries, contemporary labor market challenges, the money market and inflation, and the implications of various exchange rate systems. It also delves into household consumption and savings, investment decisions, the current account of the balance of payments, government budgets, fiscal policy, and the globalization debate. Additionally, the book examines the causes and consequences of recent economic crises, such as the subprime and Euro crises, using examples from economies worldwide. The author, with experience as Chile's finance minister, incorporates numerous examples from Latin America, as well as Asia, Africa, Europe, and the United States.
