Totalekonomi

Totalekonomi refers to the study of an economy as a whole, focusing on aggregate variables and their relationships that determine overall performance. It covers production, income, expenditure, employment, inflation and growth, and the interactions among households, firms, government and the external sector. In Swedish usage, the term contrasts with microeconomics, which analyzes individual markets.

The core data come from national accounts and statistics on GDP, unemployment, prices, and productivity. Key concepts include GDP and GDP growth, price level, the unemployment rate, the current account, and fiscal balances. The circular flow of income and expenditure links these measures and helps describe how different sectors contribute to overall activity.

Policy relevance is central. Totalekonomi informs fiscal policy, monetary policy and structural policy. Analysts study how demand and supply in the aggregate determine short-run fluctuations and long-run growth, how monetary conditions influence inflation and unemployment, and how public finances and trade affect external balances. The goal is to explain why the economy expands or contracts and how policy can stabilize or guide development.

Methods include theory-based models and empirical analysis, such as time-series econometrics and dynamic stochastic general equilibrium (DSGE) approaches, as well as scenario analysis and policy evaluation. Data quality and measurement accuracy are essential for testing hypotheses and guiding decisions.

Totalekonomi overlaps with fields such as growth theory, international economics, and econometrics, and provides the framework for understanding business cycles, policy choices, and macroeconomic development.