The conjunctural change it refers to an alteration to the current social or economic system that will not produce effects on the bases on which it is sustained. In any case, it seeks to preserve these bases so that there is no greater repercussion on the State..
Therefore, the conjunctural change does not modify either the judgments or the laws, but its greatest emphasis is only on a segment of the population that presents certain failures. It is generated when the political and social forces that have promoted this change have the capacity to assert the opportunity presented.
Commonly, this change is used to vary only one or several aspects that are very small, but that have great importance for the future of the country. They are only implemented if everyone involved agrees to make certain changes.
In this sense, not every structural difficulty requires this urgent change. Therefore, it is necessary to maintain a deep analysis on the elements that affect the country and that are of more.
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- It happens spontaneously or momentarily. Turns out to be a short term change.
- It can refer to natural problems, such as storms, catastrophes, earthquakes and others.
- It also focuses on the various social components.
- Focuses on a single problem to find the fastest solution.
- It is of less scope and duration than the structural change.
- It seeks that the elements that make up the bases of a State are maintained. In other words, once the problem is solved, the country once again has the same policies with which it works naturally..
It is when the economic policies of a country are modified with the purpose of being able to correct some existing imbalance in the economy or overcome some emergency created by man or natural, whose permanence has a time limit determined at the beginning of its execution..
These policies seek to regulate the economy in the short term in order to equalize the income of the gross domestic product (GDP) at its viable level, avoiding a bad economic cycle. For this reason, they are also called stabilizing policies, since they serve to prevent differences between viable and effective GDP..
Short-term policies have different objectives.
In order to achieve these objectives, various tools can be used, such as these:
The conjunctural change is the change in the economy that is not common, but occurs due to some special case, such as:
- When the new habits of society are taken in order to open a new market.
- When the socialist market introduces capitalist parameters.
- The change of a worker's position to an area that is not his specialty.
- When the fast food industry takes advantage of new eating habits.
- Fall or rise in prices of existing goods on the market.
- Entry into the electric car / automobile society.
- China transforming from a fully centralized economy to a market economy.
- Increases and reductions in tax revenue.
- The increase in the price of oil, which temporarily increases either the production of this resource or the debt of a country. This causes the exporting country to have a doubling of the demand for the importing country..
Circumstantial changes, when occurring in the short term, bring occasional variations. For example, when an economy is unstable and undergoing constant changes, the value of the currency adapts precisely to the state of it..
Seen in the long term, it is valid to consider inflation as a structural change, however it generates changes in the currency that are considered temporary changes.
This reflects the fact that conjunctural changes can occur on the basis of structural ones. However, this is not always the norm..
In a society, when a person suddenly leaves his job position, many times the loss of personnel is made up using a person who works for the same company, but who is not necessarily a specialist in the area to which they are assigned.
This change cannot be sustained in the long term as it would harm the company as a whole, but temporarily, in the short term it is possible to do so.
An example of a temporary change is the increase in the price of oil. This increase benefits oil-exporting countries and harms those that import it for a certain time..
Another example of conjunctural change is when public spending is increased to generate employment and improve the purchasing power of the domestic market..
Although this measure cannot be sustained in the long term because the country begins to borrow if its spending exceeds its income, it is usually a widely used policy of correction and economic reactivation.
If you want to understand the process of the Russian Revolution that took place in 1917, one must refer to the conjunctural change: the nation was being governed by a tsarist system that denied rights to most of the people..
In addition, at that time the First World War was unfolding, due to which the Russian army endured important defeats. All this conjuncture made it possible for a revolutionary movement to emerge and grow that finally managed to seize power to modify the social organization of the country..
Unlike structural causes, temporary changes are transitory, disappearing in a short period of time, such as the rainy season or electoral uncertainty. Structural changes to be solved require deep surgery or prolonged effort.
The conjunctural change occurs in a timely manner due to an exceptional event. This change is generally reversible, disappearing when that event disappears. Likewise, it will be something like a "repair", because it will not disturb the structure as a whole..
On the other hand, structural change is when the entire structure is changed, either due to a new circumstance or because deficits that must be resolved are dragging along. It is usually an irreversible change, affecting the entire structure as a whole.
Modification of the structural component of an economy cannot be carried out in the short term. This means that it is necessary to modify not only policies, but the entire economic system of a nation. The productive construction of the country must be urgently changed so as not to hinder its development.
The necessity of this change means that the foundations of certain economic habits are not suitable for the needs, expenses and budget of the country..
On the other hand, the need for a cyclical change means that the economic habits and the structure of the country can be maintained, but that there is an obvious opportunity to modify them to optimize their benefit..
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