Catalytic Role of Money in Macroeconomic Engineering | Chapter 8 | Current Topics on Business, Economics and Finance Vol. 1

 The purpose concerning this chapter is to manifest the strategic catalytic role of services in macroeconomic engineering which requires accurate identification and wise organization of all factors of result to optimize macroeconomic outcomes. It was noticed that the existing growth believes suffer from serious under requirement of critical factors that concern economic growth. The conventionalized factors of production are properly recognized as the primary determinants in the core or primary result arena which is a subgroup of the macroeconomic engineering platform that involves all factors with a concerning macroeconomic outcomes. In terms of their working attributes, the macroeconomic engineering factors attempt four categories: a) Primary factors: Labour, land, and capital that are employed in the core result arena; b)The organizational powers covering Government and entrepreneurs the one employ primary determinants in the production arena; c) Auxiliary determinants with a bearing on efficiency of primary factors and (or) administrative agents are technology and Government Policy that, under macroeconomic engineering, is distinguished from Government as company of primary factors and builder of public goods; and d) Catalytic factor, services which does not directly record the production arena, but advances and enhances the interactions of different factors.Building on Ng’andwe (1981,2020) who displayed that in developing economies accompanying mass unemployment, expansionary finances policy can lead to increases in palpable output with slightest inflation, the theoretical numerical model demonstrates the broad transmission channels by which money impacts on output in a habit that makes it the most effective policy variable to spark/ provoke and sustain economic tumor. Expansionary monetary policy concede possibility, therefore be employed by underdeveloped countries as the lead economic policy for tumor. However, the macroeconomic engineering solutions recommended here are premised on chance of a credible financial intermediation whole. In many developing countries with flawed financial systems, the design of expansionary monetary policy concede possibility be preceded by comprehensive monetary sector reforms on the scale knowledgeable by the Asian Tigers during their favorable economic reforms.

Author(s) Details:

Chiselebwe Ng’andwe,
Economics Department, University of Zambia, Lusaka, Zambia.

Please see the link here: https://stm.bookpi.org/CTBEF-V1/article/view/9711