The Limits of Macroeconomic Policy A country's economy represents an equilibrium driven by the vast functioning of many moving parts. Some of these parties include governments, policy makers, trading partners, international investors and banking authorities. Today's technological advances have made it easier than ever for money to cross national borders quickly and efficiently. This ability facilitates capital inflows and outflows in response to signals. Not all of these signals are cheap, but the effects can have a devastating impact. Evaluation The economic crisis has accelerated many changes throughout history. Whether it is the Great Depression of the 1930s, the Latin debt crisis in the early 1980s, or, more recently, the financial collapse of the U.S. housing market in 2007, crises accelerate change. Changes in macroeconomic policies surrounding monetary, fiscal, or political programs are adjusted to reverse negative trends and support long-term positive growth. There is a sort of yin and yang balance for economic policies to evolve and cycle through a continuum of consumption and conservation (Cervone & Shoda, 1999). A country attempts to optimize the balance between consumption and conservation in order to maximize productive economic growth. The main factors used to change economic outcomes are fiscal and monetary policies. These policies are adjusted based on trends associated with consumption and conservation patterns. Policy makers, whether governmental or independent (e.g. central banking authorities such as the Federal Reserve), evaluate the risk factors associated with these trends, in conjunction with historical events, in order to prevent negative economic outcomes. These idiosyncratic…half of the paper…are changes in monetary and fiscal policies toward improving economic outcomes. Works Cited Cervone, D., & Shoda, Y. (1999). Yin and Yang of the Japanese Self. The coherence of personality (). New York: The Guilford Press. Lee, C. (February 1992). The government, financial system, and large private enterprises contribute to South Korea's economic development. World Development, 20. Retrieved May 2, 2014, from http://www.sciencedirect.com/science/article/pii/0305750X9290098GGerber, J (2011). International economy. (5th ed.). Upper Saddle River, NJ: PrenticeLimitations of Macroeconomics. (n.d.). Economy exposed. Retrieved May 2, 2014, from http://economics-exposed.com/limitations-of-macro-economics/South Korea Education Reform. (n.d.). . Retrieved May 2, 2014, from http://asiasociety.org/education/learning-world/south-korean-education-reforms