Macroeconomic View of the Current Economy

Silverhorne, S. (2010). A macroeconomic view of the current economy. Retrieved from http://hbswk.hbs.edu/item/6332.html

Outline of an interview with Harvard Business School professor David A. Moss, author of A Concise Guide to Macroeconomics: What Managers, Executives, and Students Need to Know. During the interview, he touches on the fact that the macro economy is important to businesses. They discuss what Moss refers to as the three pillars of macroeconomics: output, money, and expectations. The professor states that output, which is measured by GDP, is the center of macroeconomics. The second pillar, money, mainly refers the government’s monetary policy and the third, expectations, refers to how people and businesses make current decisions based on expectations of future events. The article gives a good general overview of macroeconomics.