Reconciling economies and markets: a top-down approach
Macroeconomics and finance are linked because they are offshoots of economics. Economics is a social science that explains how parts of economies produce, distribute and consume goods and services. Macroeconomics refers to behaviors of large sections of markets, such as growth domestic product, unemployment rate, inflation rate, etc. Finance is used to discuss the specific ways money is created and managed.
From a metaphorical perspective, we might consider each economy as a tree. Then, macroeconomics would be a way to describe the tree’s bark and finance would be a way to describe its fruit. The bark and the fruit both serve a same purpose. Furthermore, macroeconomics and finance serve as economic gauges of an economy’s health and they help to show which direction an economy is growing or dying. Beyond Ratings intends to make the link between macroeconomics and markets through a top-down approach both on long- (structural analysis) and short-term horizon (cyclical analysis).