Macro & micro: There’s much more to economics other than recession and inflation – WRAL TechWire

by | Nov 27, 2022 | Financial

Editor’s note:  Dr. Mike Walden is a William Neal Reynolds Distinguished Professor Emeritus at North Carolina State University and is a regular contributor to WRAL TechWire.
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RALEIGH – Every time there is trouble looming for the economy, my schedule of presentations and interviews explode.  It happened during my forty-plus years on the NCSU faculty, and it still happens in my retirement as I continue to interact with groups and the media.

I’m seeing the same reactions today with worries about inflation and recession.  Certainly, I understand people being concerned when the economy is gloomy, especially if their livelihoods and incomes are threatened.  Some psychologists say humans are naturally wired to focus more on potential bad outcomes than on good ones.
But for some, I think the focus on negatives like recession and inflation make many think these are the only topics economics focuses on.  They couldn’t be more wrong.
Mike Walden (NCSU photo)
There are two broad categories of economics – macroeconomics and microeconomics.  Macroeconomics is “big picture” economics, concentrating on the economy as a whole rather than on the individual pieces.  Macroeconomics looks at topics such as economic growth, productivity, interest rates, the stock market, and the financial system, as well as inflation and recession.
Macroeconomics captures our attention because its components impact everyone.  Anyone who borrows or invests money is influenced by economic growth …

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