ABSTRACT
Macroeconomic variables affect financial markets and assets. Finance is usually considered to be a subsidiary category of economics. Therefore, when economists consider macroeconomic variables, financial markets and variables are usually given residual considerations. Evidently, the financial variables are not given prime consideration in the notional or real computation of national income or gross domestic product (GDP). This is partly because primary and secondary asset transactions in financial markets are not considered to be quantifiable contributions to newly created tangible goods and services.
Macroeconomic variables are integrally related to various court decisions since they impinge on matters of the appropriate discount rate, the aggregate performance of an economy, projected inflation for compensation on investments, the manner in which firms raise capital and taxes, and exchange rate determination. Macroeconomic variables have universal appeal and implications for macroeconomic policies and judicial settlements. Some of these variables are substantively dealt with in later chapters of this book. Accordingly, this chapter will not only discuss the relevant macroeconomic variables as a foundation for forensic and legal decisions, it will also highlight the foundations for understanding some subsequent economic and legal concepts in this book.
