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Conflict Between Governments Macroeconomic Objectives

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Submitted By marcielo7
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Conflict between Governments Macroeconomic Objectives

Munene Morris

Introduction
The aim of this paper is to discuss conflict between government and macro-economic objectives with a special focus on UK economy. It is good to note that over the recent times, the economy of the United Kingdom has passed through extreme turbulent times and it has been facing many challenges on its recovery (Acocella and Jones 2015). The banking crisis that has been witnessed in the recent past has pointed out many economic issues which have created an intensive debate on policy amendment within the UK government.
This essay therefore, considers key economic variables as important indicators in analyzing the state of UK economy and more on the influence created by macro-economic objectives and policies that can move the economy out of recession. The paper also considers what may likely to happen on the economy in the coming years and the effect posed by the present policy decisions. Finally the UK may likely to face major threats including losing a Triple A credit rating. However, despite of the present threats, it is good to consider the opportunities that can be realized from the economy that is recovering.
Considering the issue of macroeconomics, the most important issue to consider is whether the markets are left alone or not, normally suggesting, in regard to the long run economic equilibrium. If at no cost the function of market has led to an inclusive service level on national income with steady prices and effective economic growth, then there is no need of government intrusion on macro-economy (Clift 2015). On the other hand, there is no need for fiscal monetary as well as supply side policies. Basically, the idea here is that, the government normally interferes in the times of macroeconomic policies with an aim to come up with a complete policy objective

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