This report provides an analysis of global macroeconomic policies, examining the effects of rapid growth in emerging markets, rising commodity prices (specifically oil), and stock market booms in advanced economies. It utilizes the Aggregate Demand-Aggregate Supply (AD-AS) model to justify policy responses. The report discusses how growth in emerging markets can lead to inflation due to improper allocation of income, and how fiscal policy can be used to address this by adjusting interest rates and subsidies. It also explores how stock market booms in advanced economies increase commodity prices and purchasing power, impacting aggregate demand. Monetary policy, including open market operations and reserve requirements, is discussed as a tool to manage inflation by controlling the money supply and interest rates. The report concludes that effective macroeconomic management is crucial for maintaining economic stability and growth.