Economic Analysis

About economic analysis
Economic analysis is a process whereby strengths and weaknesses of an economy are analyzed. Economic analysis is important in order to understand exact condition of an economy. It can cover a number of important economic issues that keep cropping up within a particular economy, which is being analyzed. 
  
Macroeconomics and economic analysis
Macroeconomic issues are important aspects of economic analysis process. However, economic analysis can also be done at a microeconomic level. Macroeconomic analysis helps in understanding fundamentals of an economy. Since such a form of analysis operates on a wide scale, it helps one to analyze strengths and weaknesses of particular economies. Macroeconomic analysis takes into account growth achieved by a particular economy or rather a particular sector of that economy. It tries to find out reasons behind a particular economic phenomena like growth or reversal of economy.

Inflation and economic analysis
Many countries of world are plagued by a rising rate of inflation. Economic analysis helps in providing an explanation of why inflation has taken place. It also suggests ways in which rate of inflation could be brought down, so that economic development could continue.

Economic analysis and governmental policies
Governmental policies and plans, pertaining to economy, have always been an important part of economic analysis. Since policies and plans adopted by a particular government is responsible for shaping an economy, they are always closely scrutinized by various processes of economic analysis.

Economic ratings and economic analysis
Economic rating is another important part of economic analysis, as it provides an accurate picture of how an economy was faring when those ratings were being calculated

Economic analysis and comparison of economic policies
It is a good way to analyze an economy by comparing its policies with those followed by other economies. This is all more applicable in case of economies that are of similar types, for example developing economies.

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Arun Rajesh,
Sep 10, 2009, 2:11 AM
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