MACROECONNOMICS

Macroeconomics aims to provide a grasp of essential macroeconomic theory and how this informs, or provides a critique of, the decisions made by governments, central banks and the private sector. Whether you are a Central Bank official striving to control inflation, Government considering the implications of a tax cut, an investment banker evaluating a debt funded acquisition, or simply an interested observer of the economic commentary appearing in the press, a firm grasp of macroeconomic theory is essential.

1. Understand how an economy operates

2. Describe the fundamental economic goals and measures of economic activity.

3. Analyze the workings of the macro economy using the aggregate expenditure and aggregate

   demand/supply models;

4. Discuss the business cycle and its relationship to inflation and unemployment;

5. Describe the financial, monetary, banking system, and the role of Central bank.

6. Explain the role of monetary policy in economic stability of a country; and

7. Describe fiscal policy and its impact on aggregate expenditure and aggregate demand;

8. Explain the balance of payment accounts, exchange rates and related issues.

The macroeconomy affects business conditions and social conditions generally. The behaviour of an economic system at the aggregate level is often broadly predictable. The course begins by introducing core concepts, basic terminology and how some key aggregates are measured. It then explores what determines long-term economic growth in living standards in developed and in developing economies. The course explores why an economy experiences short-term cycles in activity (i.e., recessions and recoveries) around its long-term growth trend. It explains what central banks and governments can do to smooth these fluctuations and to raise the trend.