Sunday, December 22, 2019

Macroeconomic Objectives Of The Malaysian Economy

Four macroeconomic objectives In this section I will be discussing how well does Malaysia manage to achieve the four macroeconomic objectives which are; high and stable economic growth, low unemployment, low inflation and avoidance of large balance of trade deficit. One of the ways that Malaysia’s economy plan to reach the goals of high and stable economic growth is by implementing a fiscal consolidation â€Å"The Malaysian government has embarked on fiscal consolidation† (Ratings and Investment Information, Inc, 2014) through using fiscal policy the Malaysian government are able to help drive the growth of the economy, as well as a statement from the Prime Minister Datuk Seri Najib where he said â€Å"The increase in petrol price is a process to strengthen the economy in the short and medium term† (Bernama, 2013) by increasing the price of fuel it will enable to generate more money into the economy thus resulting in the surge of growth in the short and medium term, however this is not a long term plan. One the main feature of the Malaysian economy has been to have a low and stable rate of inflation in the past couple of decades. The current inflation rate in October 2014 was at â€Å"2.80%† (Trading Economics , 2014) this shows that inflation is currently at a steady pace. Figure 1.2 (Trading Economics, 2014) Figure 1.2 shows how the trend in inflation has been for the past 25 years showing the inflation rates have been increasing and decreasing as a steady rate and on average hasShow MoreRelatedImportance of the Macroeconomics Objectives Towards the Malaysia Economic Performance.1564 Words   |  7 Pages| 2.0 | Macroeconomic Objectives | 4 | 3.0 * 3.1 * 3.2 | Economic GrowthThe ImportanceExample | 556 | 4.0 * 4.1 * 4.2 | UnemploymentThe ImportanceExample | 778 | 5.0 * 5.1 * 5.2 | InflationThe ImportanceExample | 9910 | 6.0 | Conclusion | 11 | 7.0 | References | 12 | 8.0 | Appendix | 13 | 1.0 Introduction This assignment is to discuss the importance of the Macroeconomics Objectives towards the Malaysia economic performance. 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