ABSTRACT
Trade, by definition, involves at least two markets. Macroeconomics includes trade between the various sectors and markets in an economy, as well as trade with other economies. Therefore, the natural progression for our analysis is from the microeconomics of forestry in one market—the topic of previous chapters—to trade in forest products. Furthermore, as previous chapters added the impacts of markets and policies in adjacent sectors on the forest, the progression to trade between markets must include the impacts of macroeconomic activity on the forest. These latter topics, trade and macroeconomics, are the themes of this chapter. Over time, entire economies grow and develop. This dynamic aspect of macroeconomics is comparable to the intertemporal aspects of the microeconomics of forestry discussed in chapter 3. This chapter also inquires into these dynamic macroeconomic effects on forests.
