Peculiarities of Macroeconomics

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In the current epidemiological situation, macroeconomics is in a state of crisis. The current market system is now complicated to represent an integral mechanism that could unite all continents. Countries such as the United States and China have long restored the pre-crisis economy and therefore continue to wage trade wars again, ignoring Europe. The main task of this work is to identify in which direction the economy should move, and how to avoid risks and protect its domestic market.

It is becoming evident that the main export and import item, along with essential goods, will be vaccines. The economy whose variety of vaccines is more significant and whose quality is higher will have more profit (Ludovic, 2021). There are already the first results of such a policy; the US and Chinese economies are returning to pre-crisis indicators, mainly due to the export of vaccines.

The situation is much worse in Europe because there is economic heterogeneity on the continent itself and the weak implementation of vaccines. Many states of Southern Europe are dependent on such an area as tourism, from which they receive the most significant profit. Countries such as Bulgaria, Greece, Montenegro, etc., have suffered dramatically due to the pandemic because they practically do not have production facilities (Ludovic, 2021). A high level of imports characterizes such states, but an absolute low share of exports.

The US and Chinese economies are already making plans for further economic development, measured in trillions, while Europe is trying to return to pre-crisis indicators. The European Union relies on cooperation between the continents countries, but the existing heterogeneity complicates this process (Ludovic, 2021). In such circumstances, it is necessary to expand cooperation with the entire world market, which includes the United States, and China.

In the context of a pandemic, it is difficult for macroeconomics to exist as a single system, so it is essential to develop a comprehensive plan for global cooperation. The policy of protectionism should take a back seat since it will not promote both exports and imports of goods. The governments of all countries should understand all the risks of such events, but this is the only thing that can painlessly level the economic system. Anyone who follows the economy and understands its principles can and should agree with this statement. It is the very moment when it is worth sacrificing the private for the sake of maintaining a common economic space.

Reference

Ludovic, S. (2021). Uncertainties in macroeconomics of Europe due to COVID-19 [Video]. TED. Web.

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