This class is designed to give you some insight into the enormous differences in economic environments faced by businesses around the world: how the environment in the United States differs from that in (say) France, China, or Mexico. We will view the world through the lens of open economy macroeconomics, the field of economics concerned with the national performance, policies of countries and interactions among them. We will use it to study such issues as economic indicators and forecasting (Where are we headed?), economic growth (Why are some countries more productive than others?), business cycles (booms and recessions), employment and unemployment, inflation and deflation, monetary policy and interest rates, international trade and capital flows, foreign exchange rates, and impact of fiscal policy. By the end of the Mini, you will be able to:
- Better understand the behavior of the economy as a whole.
- Better understand the sources of the various controversies concerning macroeconomic policy.
- Explain how differences in “local institutions" change the nature (and cost) of doing business.
- Describe the causes of good long-term performance: why per capita income is higher in
the US and France than in India or Mexico.
- Evaluate such economic indicators as bond yields, employment, inflation, exchange rates,and current account deficits.
The topics covered in this course are relevant for:
Managerial Economics, Finance, Non-profit Studies, Political Economy, International Business
Requirements of this course include 4 weekly group assignments (30% of total grade), a take-home midterm exam (25% of total grade), a final exam, (35% of total grade) and peer review for assignments/ class participation (10% of total grade). Group work is required for the assignments and groups can at most include 4 people. Final grades will be determined on a relative basis students with the highest total points will receive As those next in line will receive Bs etc. (2013-SY)
Lecture: 100min/wk and Recitation: 50min/wk