Microeconomic analysis and macroeconomic analysis are well-established fields that provide research and practices for thinking about behavior and financial performance of geographically bound economies (macroeconomics) and their constituent economic agents (microeconomics).
Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of economic policy.
Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. One goal of microeconomics is to analyze market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses. Microeconomics shows conditions under which free markets lead to desirable allocations.
At Polkascan Foundation we are currently exploring one such microeconomic analysis method, called: ‘financial accounting’. We introduce the notion of ‘Cyberspace Accountancy’ as a new way to think about the financial performance of cyberspace economies and their native economic agents. By applying financial accounting practices on blockchains, their combined multi-chain data is made accessible and understandable for a wide and potentially new audience, beyond the tech-savvy.
Future work may include other microeconomic analysis methods and macroeconomic analysis methods to further our thinking about aspects of cyberspace economies such as aggregate economic activity, issues of growth, inflation, monetary policy and more.