Essay: Current Macroeconomic Events
Macroeconomic activities are the financial activities that are happening outside a certain economy but at the same time direct impact on the said economy. The economy of the world was overwhelmed by the uncertainty of the macroeconomic activity that has never been witnessed for the last twenty-five years. The fact that the economy of China is growing rapidly has affected the price of several commodities in the US.
Prices of most the essential products have been on the rise in the US. These products include natural gas, oil, corn and coal, whereas the prices of houses have been falling sharply. It is of paramount importance to note that fuel prices have risen in the recent past despite the fact that they have been stable for sometime. This is because demand of fuel has been on the rise in the other countries and especially in the emerging economies. Countries such as Middle East, China as well as India have registered an increase in the consumption of fuel thus driving the demand high. When the demand of a certain commodity is high, consequently the price of the said commodity always goes up. ( Nai-keung 2010 available online)
There has been a severe drought around the world, which has caused crop failure in many of the agricultural heavyweights including Africa. This has led to an increase in the demand of most cereals including corn and thus the prices rose.