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Problems in controlling macroeconomic objectives There are four major macroeconomic objectives: the control of inflation, the control of unemployment, the promotion of economic growth and avoidance of balance of payment difficulties. In order to achieve there four objectives, governments act an important role, by using instrument such as tax rates, interest rate and son on. However, governments have difficulties to achieve a satisfactory level each of there four objectives because of being variable. The control of inflation Inflation is a rise in the average price of goods over time. To control inflation, in the long run if the rate of money growth becomes low, the inflation rate will be low. But this needs to keep fiscal policy fairly tight so that deficits are also low. However, to get this position from beginning position of high inflation, it is necessary to get through an intermediate period of high unemployment, until prices and wage...

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