Macroeconomic variables

macroeconomic variables

It is essential to be familiar with the different macroeconomic variables, to know what they are for and how they influence us as citizens.

For this reason, below we are going to tell you everything related to macroeconomic variables and economic.

Macroeconomic variables, what are they for?

La purpose of macroeconomic variables, focus on discovering what type of economic activity in a country and also as a basis believe that it will evolve over the months in that same place. In order to carry out these statistics, what is done is take into account certain indicators by means of which we will know the economic situation of the country, what is their level of global competition and where is the country headed.

After conducting this study you can know which companies are the best performers within the country and also, to make known which companies are best located within that country.

What macroeconomic studies can be used for

The studies of macroeconomic variables can be used to purchase one or more companies within a country. Macroeconomics is important because it is the one that through the criteria and political recommendations, both fiscal and monetary.

Through the macroeconomic variables you can know the stabilization of the cost of things within a country on the free market. It is understood that the country is stable when prices do not rise or fall at any time.

Through macroeconomics, an attempt is made to have a full level of work for the entire population of a country. Macroeconomics focuses on studying all the norms that are linked in a country with the other countries of the world.

The political environment and macroeconomic variants

Political Economics

The analyzes that are made to know macroeconomic variants, they should always be carried out to be able to determine any type of political risk on the present economy or the future economy.

When investments are accepted from abroad, this risk is doubled since the government that sells can camouflage the performance or even seize assets of the companies.

What strategies are used

This can be done by adjusting the expected cash inflows within a project. You can also do it using the discount rates that are adjusted to the risk of the total budget of the country.

The proper way to do it is adjusting cash flows on individual projects that make use of a global setting for different projects.

What happens when you invest abroad

When are they accepted foreign investments, this risk is doubled since the government that sells can camouflage the performance or even seize assets of the companies.

This can be done by adjusting the expected cash inflows within a project. You can also do it using the discount rates that are adjusted to the risk of the total budget of the country.

The proper way to do this is by adjusting the cash flows on individual projects that make use of a global adjustment for different projects.

What are the most relevant macroeconomic variables

List of macroeconomic variables

Next we will take a closer look at the most important macroeconomic variables:

Gross domestic product

Within the macroeconomic variables, one of the first things considered is GDP. This is the value of the services and goods of a country that are produced by companies. People who work within the area during a specific period of time are also counted. The sectors of the economy that are present in this case are primary, secondary and tertiary.

In order to have a real macroeconomic variable, all goods that have been produced in that country must be taken into account, regardless of whether they have been sold or not. The sum of everything also includes international companies. For example, if we are looking for the Spanish variable, foreign companies will be taken into account as well.

Related article:
GDP by country

The risk premium

The risk premium or risk of a country, it is the second thing that must be taken into account when calculating macroeconomic variants. The risk premium is the premium that investors give when making purchases of a country's debt.

This extra cost is required by all investors to buy bonds in any country. Investors are given a superior return when they take risks of buying in countries in order to obtain a good return.

before purchasing,
Related article:
How does the risk premium affect the stock market?

How is this premium calculated?

All countries issue bonds that are exchanged in secondary markets and in which the interest rate is set according to demand. The premium is calculated from the difference between the 10-year bonds that a country in the European Union has, compared to those issued by Germany.


Inflation is one of the macroeconomic variables more important, because it is the one that directly indicates the increase in prices in a generalized way.

Generally, a one-year account is made and this not only includes the goods of a country, but also all services.

Related article:
What is inflation?

What factors occur within inflation

Within inflation there are many factors. One of the main ones is the demand; When the demand of a country increases, but the country is not ready for it, there is a rise in prices.

The second is the offer. When this occurs it is because the cost of producers begins to increase and they begin to increase prices in order to maintain their profits.

For the social causes. This occurs in the event that price increases are expected in the future, but collectors begin to charge more expensively ahead of time.

Interest rates in macroeconomic variation

It is another factor that is taken into account for macroeconomic variations. Within a country, the most important interest rates are those set by the central bank. The money is loaned by the government to the banks and these banks in turn give it to other banks or to individuals.
When that money is lent, it is based on the interest rates of that bank and that must be returned along with the rest of the money.

The exchange rate

Another important point in the macroeconomic variables is the exchange rate. The exchange rate is always measured between two main currencies and this is also decided by the European Central Bank. The exchange rate is one of the most important points when it comes to knowing whether a country's currency is devalued or revalued.

Balance of payments

balance payments to calculate economic variables

Balance of payment It is something that must always be kept in mind when trying to know the macroeconomic variables. Here, what is counted are the financial flows that a country has during a certain time, which is normally a year.

Within the balance of payments there are several types to calculate the economic variant:

  • Balance of trade. The trade balance is the one that accounts for the exports of the types of goods, as well as the types of income.
  • Balance of goods and services. Here the trade balance and the services balance are added. This is where transport services, freight, insurance and tourism services, all kinds of income and technical assistance come in.
  • Current account balance. Here the goods and services of a country are added, in addition to the operations that have been carried out by transfers. This balance also includes the repatriations of immigrants who arrive in the country, the international aid that is given to many countries or the donations made to international organizations.
  • Basic scale. Here, we have the sum of the current account plus the long-term capitals.

Unemployment as a macroeconomic variant of a country

Unemployment in a country is the number of unemployed that a given country has. The definition of an unemployed person is the person who wants to work but cannot find a job and not all the people in a country who are not working at the time.

To find out the unemployment rate of a country, the percentage of people who are unemployed must be taken over the amount of the active population.
For a person to be said to enter the workforce, they must be over 16 years of age. Within Spain, there are two means by which the unemployment rate can be measured and they are the state employment service or labor force surveys.

Supply and demand indicators in macroeconomic variations

In this case, the supply indicators are those that tell us about the economic offer of a country. Among these indicators are industry supply indicators, construction indicators and service indicators.
Regarding demand indicators, they are consumption indicators, investment demand indicators and finally those related to foreign trade.

Aggregate demand and supply

the statistical model of supply and demand helps us to analyze macroeconomic variables

This model try to define the economic present analyzing the production of a period and the existing prices through the aggregate supply and demand functions. It is the fundamental instrument to study the different fluctuations in production and prices thanks to a mathematical model that can be represented graphically. Thanks to this tool, it serves to support to understand the consequences of different economic policies and as a result to be able to analyze the impact on macroeconomic variables.

The components to carry out this analysis are that of supply and aggregate demand.

  • Aggregate demand: It is a representation of the market for goods and services. It is made up of private consumption, private investment, public spending, and in the cases of open economies of net exports (exports minus imports).
  • Offer added: It is the total amount of goods and services that are offered at different average prices. So this model is used to analyze inflation, growth, unemployment and, in short, the role that monetary policy plays.

Microeconomic variables: what are they?

Are those variables that concern individual economic behavior. They can be both companies and consumers, investors, workers and their interrelation with the markets. The elements that come into play to be analyzed are usually goods, prices, markets and the different economic agents.

Depending on which individual agent is studied, some studies or others apply. For example in consumers, the theory of the consumer is taken into consideration. From here, your preferences, budgets, usefulness of the products and types of goods, allow you to find out how consumption will occur. Similarly, for companies, there is the theory of the producer as a function of production, profit maximization and cost curves. As for markets, the structure and models of perfect and imperfect competition tend to be analyzed.

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  2.   José said

    These publications should read all humans and it would change the world in many aspects, how important to have an idea of ​​how the economy of different countries moves and thus take alternatives. Greetings from Quito - Ecuador.

  3.   OVEN said

    Good information; although it is a little badly written and some parts are inconsistent.

  4.   Carlos R. Grade Salayandia said

    The use of economic variables is very important that the country has reliable, real sources. objective and timely objectives of the fundamental economic variables, in order to know their real and timely trend, to prepare comprehensive national economic plans and forecasts, so that economic units can make decisions as close to future reality, establish a control system of these variables, and above all to establish measurement mechanisms to know their trend, results and inference in the economy of economic units.