Global Macroeconomic Policies: Policy Responses for Rising Commodity Prices and Stock Market Booms

GLOBAL
MACROECONOMIC
POLICIES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Commodity prices, such as oil, are rising due to continued expansion in new and developing
economies. Discuss the policy response for this issue...........................................................3
Stock market boom in advanced economies. Discuss the policy response for this issue.......6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Major transformations in demography, income, technology, and environment have
ushered in a new period of fast global change. However, economic development has been
unequal, has harmed the environment, and has already halted owing to climate change.
Developing countries must address a number of connected underlying issues in order to achieve
long-term economic growth and inclusion. Low productivity and international competitiveness,
inefficient government spending, insufficient domestic resource mobilisation, price distortions
from the general budget that discourage sustainability, level of financial resilience, mounting
debt levels, an uncertain manufacturing, and the rising threat of climate change are just a few of
them (Hai-Jew, 2020). These factors contribute to the market's macroeconomic equilibrium. It is
the factor that guarantees that the market's expansion is taken into account more thoroughly. The
impact of rapid expansion and developing markets, increases in commodity prices such as oil,
and stock market booms in advanced economies will be examined in this report, as well as the
merits or potential policy responses of macroeconomic policymakers using aggregate demand
and aggregate supply to rationalise the remarks.
MAIN BODY
Commodity prices, such as oil, are rising due to continued expansion in new and developing
economies. Discuss the policy response for this issue
Economic growth is defined as a rise in the production of economic goods and services
from one period of time to the next. This is calculated both in real and nominal terms.
Historically, gross national product (GNP) has been used to quantify the country's overall
economic growth (GNP). Economic growth is defined as an increase in aggregate production in
the economy (Mazier, 2020). However, aggregate gains in overall production are not always
associated with higher average marginal productivity, which leads to an increase in income,
prompting consumers to open their wallets and spend more, indicating that they are putting their
money toward a higher quality of life or standard of living.