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March 27, 2017

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What economic policy should be adopted by regions with persistent economic problems? Why is macroeconomic policy NOT the solution?

  • Economics - ,

    First, I disagree with your opening premise; a macroeconomic policy may well be the correct solution.

    The appropriate economic policy depends on the economic problems. High inflation, for example, may call for reducing the money supply (a macro solution I might add). High unemployment may call for some form of fiscal stimulus (also an macro solution).

    I hope this helps

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