PMCN Case Study Essay -- PMCN Analysis

The theory of economics does not furnish a dead body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique for thinking, which helps the possessor to draw correct conclusions. The ideas of economists and politicians, some(prenominal) when they are right and when they are wrong, are more powerful than is normally understood. Indeed the world is ruled by little else. Practical men, who conceptualize themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. (John Maynard Keynes, the General surmisal of Employment, Interest and Money p 383) Critically assess the extent to which the ideas of economists might improve the performance of an organisation of your choice. Table of ContentsIntroduction3Context4 literary works Review51. Microeconomic Concepts and the PMCN51.1 Transactions Cost Theory51.2 Profit Maximization72. Macroeconomic Concepts and the PMCN92.1 fiscal Policy and the Budget.92.2 Monetary Policy Rules Based Framework/Taylor Rule.113.Synthesis and Conclusion13References14Bibliography18IntroductionThis paper provides a critical assessment of the performance of organizations which could be linked to economic theories and concepts. done a review of various literature, research and conclusions of economists such as Friedman (1970), Coase (1937), Williamson (1981, 1998, 1975), Sloman et al. (2013), Powell (1990), Taylor (2011, 2012) and so on, the researcher presents a critical assessment of the microeconomic and macroeconomic concepts which were launch to affect performance of a typical organizations. The concepts were also linked to other(a) aspects of economics ... ...ft/wp/2013/wp1365.pdf. Accessed on 21st of April 2014.Grossman, S.J and Hart, O.D (1983). An Analysis of the Principal-Agent Problem. Econometrica Vol. 51, No. 1 January 1983. purchasable on http//classes.maxwell.syr.edu/ecn611/GrossmanHart83.pdf. A ccessed on 20th of April 2014.Jensen, M.C and Meckling, W.H (1976). Theory of the Firm Managerial Behavior, authorisation Costs and Ownership Structure. Journal of Financial Economics, October, 1976, V. 3, No. 4, pp. 305-360. usable on http//www.sfu.ca/wainwrig/Econ400/jensen-meckling.pdf. Accessed on 20th April 2014.Tadelis, S and Williamson, O (2010). Transactions Cost Economics. University of calcium BekerleyThe IMF (2014). Fiscal Policy and Income Inequality. International Monetary Fund Policy Paper. Available on http//www.imf.org/external/np/pp/eng/2014/012314.pdf. Accessed on 21st of April 2014.