Macroeconomic Policy

Macroeconomics is in the news every day. Anyone who pays attention to the news knows that the crash in the US housing market in 2008 caused dramatic perturbations to financial markets all around the world. This, in turn, triggered very strong responses by governments in the US (in particular the Federal Reserve and the Treasury), as well as in other countries. This meltdown in financial markets and the interventions from policymakers raise a number of key questions about the health and the future of the economy in the US and abroad, which we will address in the Global Economic Environment II course.This course is a sequel to the core course Global Economic Environment. Building on the fundamentals introduced in that course, we develop a conceptual framework to explain the complex interactions between macroeconomic policy, asset prices, and business cycle fluctuations. In particular, we examine macroeconomic forecasting, determinants, and implications of budget deficits, the conduct and implementation of monetary policy, and the determinants of inflation in the U.S. and other market economies around the world. Special attention is given to the interactions between macroeconomic forces and asset prices.Since an important goal of this course is for students to become informed and sophisticated consumers of economic news, the issues discussed in this course draw heavily from current events and real-world examples. Note I: The core course GEE while recommended is not a pre-requisite for taking GEEII. Students who expect to exempt from the core course GEE are recommended to take GEEII instead.