Macroeco

Reflection to the two macroeconomic arguments After reading these two macroeconomic arguments, I feel I got something new about macroeconomics. Diane Coyle did not believe that macroeconomics plays an important role in our social life and the microeconomics seems more useful than macroeconomics. In order to support her arguments , she listed many macroeconomists’ book and viewpoints. She suggested that the economists need to do better at explaining their work to the general public. The second article is the response of Jonathan Portes to Diane Coyle . Jonathan Portes put forward many arguments to against the Diane Coyle’s viewpoints. Diane Coyle believe that the macroeconomics and macroeconomists have little credibility in general, the discussion among macroeconomist is so shouty. And Jonathan Portes used the example of UK and US to answer the first question. Both the US and UK have had deficits running at historically extremely high levels, and long-term interest rates at historic lows. It shows the theories on the text book works well. Then the author used the economic theory made by Paul De Grauwe to tell people that the policy encouraged people to ignore the rating agencies rather than to expand the fiscal deficit without limit. Jonathan Portes also explained that he can be fairly blunt when some policy are behaving incompetently . And he thought some macroeconomists agree on the economic theory does not mean they can explain the theory well to the public . He thought the explain of the economic theory is the job of politicians. At the end of article,the author showed his viewpoints :“But overwhelmingly I think the mess the global economy is now in is the consequence not of listening to macroeconomists, but ignoring the credible ones. ” I think the second author --Jonathan Portes presented the most economically coherent argument. It is true that Diane used many books to support her arguments, but Jonathan’s arguments look stronger for me. For example, Jonathan used some true cases to response and against to Diane. Diane believed that the theory of macroeconomic does not work well. Then the Jonathan put forward the example of UK and US to show the theory works well. In my opinion, the macroeconomics matter. We all know that the microeconomics play an important role in economic environment , it focus on the decision of economic unit,like family and company. Comparing with the microeconomics, the macroeconomics focus on the whole economics, it take the whole economics as one unit ,and study how to maximize social welfare. It seems that the microeconomics is more close to our life, because it affect our life directly. But macroeconomics is also important to our life . It can solve some big problems like GNI(gross national income),total employment, inflation, the growth of economics . So it can also influence our social life greatly.