Þjóðhags

Þjóðhags is an Icelandic term that refers to macroeconomics or the national economy. It describes the study and analysis of economy-wide phenomena and policies that affect the entire economy rather than individual markets or firms. The term is used in academic, governmental, and media contexts to characterize analyses of how a country’s economy performs and how it is structured.

Key topics within þjóðhags include gross domestic product (GDP) and national income, inflation and price levels, unemployment, investment, savings, fiscal policy (government spending and taxation), and monetary policy (interest rates, money supply) as well as external balances such as the current account and exchange rates. The focus is on aggregate outcomes and the interactions among different sectors of the economy.

Methods used in þjóðhags combine theoretical models—drawing on classical, Keynesian, and contemporary macroeconomic frameworks—with empirical analysis based on national accounts, price indices, and labor market data. Forecasting and scenario analysis are common tools for policymakers and researchers to assess growth prospects and policy trade-offs.

Institutions involved typically include the national statistical agency, the central bank, and government ministries of finance or economic affairs. In Iceland, as in other countries, þjóðhags informs policymaking, budget planning, and public communication, and it is a standard part of economic reporting by media and academic institutions.

While microeconomics examines individual agents and markets, þjóðhags focuses on aggregate phenomena, structural features of the economy, and how policies influence overall economic performance. The field evolves with new data, models, and the effects of globalization on economy-wide dynamics.