Macro Real Life Examples

double-check before using bc they're maleshkovs bs

contractionary monetary policy against high inflation

ECB and Federal Reserve interest-rate increases in 2022-2023

 cost-push inflation and stagflation risk

Eurozone energy shock after Russia’s invasion of Ukraine

expansionary fiscal policy and multiplier effects during recession/recovery.

US COVID-19 fiscal stimulus —> injections of trillions of dollars in the economy, unemployment benefits, and funds for small businesses

 weak inflation, liquidity trap, and limits of monetary policy.

Japan Lost Decade and zero lower bound —> deflation led consumers to postpone spending; Bank of Japan’s low interest rates created a liquidity trap where individuals hoarded cash, making monetary policy ineffective

cost-push inflation, wages, mortgage effects, and fiscal credibility

UK post-pandemic inflation and interest-rate increases —> solution for wage-price spiral; higher costs of energy and goods, leading to reduced consumer spending and increased mortgage repayments.

interventionist supply-side policy and long-run productive capacity.

US Inflation Reduction Act / CHIPS Act —> investments in clean energy, unemployment benefits and job creation to boost economic growth and productivity.

labour-market reform and structural unemployment debate

Germany Hartz reforms —> deregulated temporary work agencies, lowered unemployment benefits; led to increased employment rate but unequitable