POLICY IN ENSURING MACROECONOMIC BALANCE

This research will examine the role of financial policy in ensuring macroeconomic equilibrium, using the United States and Azerbaijan as comparative cases. Macroeconomic equilibrium is one of the most important and complex categories within modern economic theory. Different approaches and concepts regarding this category have been developed from the perspectives of various economic schools of thought. In economic theory, macroeconomic equilibrium, in its broadest sense, is characterized as the state in which the economic processes of the national economy are harmonized and balanced, encompassing aggregate demand and aggregate supply, accumulation and investment, production and consumption, and the real and financial sectors, while ensuring equality in development rates. Equilibrium at the macroeconomic level represents a distinct concept compared to equilibrium in microeconomic theory, which focuses primarily on individual markets. Macroeconomic equilibrium arises from the interaction and influence of all markets collectively, rather than from the behavior of individual markets. In this state of equilibrium, the adverse effects caused by fluctuations or changes in supply and demand within a market are not limited to that specific market or its participants, but rather affect the conditions and elements of equilibrium in all other markets. In a broader sense, economic equilibrium reflects the persistent problem of mismatches between economic resources and demands. Given economic realities, in which demands systematically exceed available resources, achieving complete compatibility is not possible, even within the framework of economic equilibrium. Therefore, equilibrium is only possible by limiting demands in some way and ensuring the efficient use of available resources. .