Colombia, Economy Growth in our country
For macroeconomy, the economic model IS and LM, I believe in my opinion that it is a good model, therefore it is useful since it helps to economic balance, that is, productivity equal to consumption there is a stability in the economy, it is demonstratedthat in our country and economic model of "neoliberalism" (Sader, 2017) imposed by the governments of the ninety are a complete failure.
The economy until now has begun to emerge in an independent way due to the "peace process" (Alba Moreira, 2015), but with the breach of the agreements that were made at the time, violence is being strengthened therefore the companyForeign is not striking to invest, although there is a lot of credibility in the Colombian economy, we are not equal to other countries but our economy is stable. This model is financial stability, Colombia should use this economic model and perhaps linked in some ways to the orange economy, which is an economy that flows within diversity but in turn is a creative economy, there must be balance between offer anddemand.
The business world is based on the microeconomy that we can define as an economy of an area, country or groups of countries based on individual activities of a buyer, a manufacturer, of a company, we can also say that macroeconomy is definedAs an economy of an area, country or groups of countries, considered as a whole and using global collective magnitudes as a national income, employment, investments or imports or exports.
There are many economic models in the world each of them with their pro and against, a catastrophic for Latin America such as "neoliberalism" (Sader, 2017) that I leave many entrepreneurs in the bank broken by not being able to compete with the big companiesand multinationals where the largest gap was extended between rich and poor.
Today there is also talk of the “orange economy” (money, 2019) that we can define it as the set of activities that in a chained and creative way allow ideas to become goods and services for the strengthening of public and private institutions.
The IS and LM model, is a new tool of macroeconomy where the idea or word fundamental, is balance between “investment and savings” (Moreno, 2013) lm balance between liquidity and the supply of money, which leads usThinking that carried out would allow us that any multinational and large economic groups do not fall or declare bankruptcy due to bad administrative management.
Making it clear that in this model the predominant values will be honesty, honesty.
The IS and LM model constitutes one of the neoclassical central nuclei and shows the relationship between interest rates and the real product, the goods and services market and the money market that leads us to know the real policy in the field of economy.
There is a curve model in the Cartesian plane where the abscissa are and or the gross domestic product of a country, and also represents the interest rate. IS represents all the equilibrium points between the goods and services market and its name is due to the terms investment and savings, the LM curve represents the equilibrium points in the money market is due to the preference for liquidity.
This strategic model was born in 1936 following a publication called "The General Theory of Employment, Interest and Money" (López, S.F.)
Great economists such as Jhon Maynard Keynes of British nationality (1,883 and 1946) one of his contributions says: “An inadequate general demand could give long periods of high unemployment, the product of goods and services of an economy is the sum of four components:Consumption, investment, government purchases and net exports, that is to stabilize the economy ”(Sarwat Jahan, 2014)
Although the Colombian economy is in a period of growth and today they say the results of the DANE and the Ministry of Finance and Public Credit that is at 3.3% with all the foci of corruption in the state, if we apply this model, our country, does our countrywould not grow more in its economy? I believe and I am convinced that yes, because there would be a balance between what is consumed and or that it is invested, among the country exports with net profits and what it buys at a real price, this would make all large and small entrepreneurs grow in a waybalanced.
Economist Sir Roy Harrod (1900-1978) gives keywords for economic strengthening. "For there to be balanced economic growth and with full employment it is necessary for the product and productive capital to grow exactly proportion, the natural rate" (Humberto Franco González, 2005)
In other words we can say that the opposite is happening in the economy of our country to words this economist because the growth of capital is less than job offers, that is, many people to get a job and few companies to offerThis job.
Jhon Richrd Hicks is an English economist, he is also a Nobel Prize in Economics in 1972 for his pioneering contributions to the theory of general economic balance and the theory of well -being this promoter of the theory Savings and investment, where he spoke that “development“ the developmentTechnological is not necessarily a reduction in labor ”(Porter, 2014)
The economy must go with technology without ever neglectdecides.
James Edward Meade, English economist Nobel Prize in Economics 1977. For its contribution to international trade theory and international capital movements. "The Government must play a broad role in the direction of the economy, the economy cannot dissociate from demands and needs"
The economic policies of a country must always be aimed at productivity, the progress of the peoples and that is the end, but in our country these policies are established in IMF (International Monetary Fund), there they establish guidelines that always seek is to providemoney to countries to subjugate them to handle their economies and mostly seek productivity by attacking the lower classes so as not to get out of poverty and stagnation.
Today Colombia belongs to the ODEC an organization that seeks the cooperation and economic development of the peoples, it is intergovernmental to it belong 34 countries committed in its market economy and political systems manage 80% of the world GDP, it will be that our country Colombia isAmong the most powerful economies in the world, can Colombia compete with economies as strong as China or match it? Or it only seeks to look at him with other eyes when the reality is that in our country there is still extreme poverty, villages without electricity, and there is still a good illiteracy rate, and corruption is present in almost all of the state of the state.
What the government should do is balance that gap between rich and poor and find a way that all inhabitants had dignified housing, a prosperous health system and a well -balanced economy.
This model is economic should be applied to the entire economy of our country, it is demonstrated that it is failure, that there are great economists with Nobel Prize that has shown that there must be demand for productivity, that there must be a balance in all organisms ofour society.
In this economic model it shows us how equality is a basic principle, equity and balance are its foundation, an economy cannot grow if there is productivity and there is no one to consume, that there must be reciprocity the company benefits, the worker benefitsThe global growth of a country’s economy is strengthened.
This economic model should be applied in Colombia, it is shown that economic models such as capitalism and neoliberalism have increased the inequality gap enters rich and poor.
References
- Alba Moreira, M. F. (October 2015). Cidob. Obtained from https: // www.Cidob.org/es/publications/documentation/dossiers/dossier_process_de_paz_en_colombia/dossier_process_de_paz_en_colombia
- Money. (September 5, 2019). Obtained from https: // www.money.com/news/economy-orange/8813
- Humberto Franco González, H. R. (October 21, 2005).
- López, J. F. (s.F.). Economipedia. Obtained from https: // economipedia.com/Definitions/Theory-general-of the-Employo-Interes-Dinero.HTML
- Moreno, m. A. (June 21, 2013). Salmon blog. Obtained from https: // www.elblogsalmon.com/concepts-de-economic/el-model-is-lm-and-the-political-macroeconomics
- Porter, e. (April 30, 2014). The country . Obtained from https: // elpais.com
- Sader, e. (February 8, 2017). Alainet. Obtained from https: // www.Alainet.org/es/article/183385
- Sarwat Jahan, A. S. (September 2014). IFM.org.
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