This course aims to teach macroeconomics by continually exposing students to cases and applications so students really understand the underlying theory, and to emphasize policy and practice in macroeconomics by discussing the most exciting, current, major policy debates in the macroeconomics field. In particular, through applications and policy and practice cases, this course provides students important perspectives on current events, domestic and global issues, and historical episodes.
Students learn how to apply theory to real-world examples, such as the Great Inflation from 1965 to 1982, the 2007—2009 financial crisis, the impact of oil prices on real wages and the stock market, why income inequality has been growing over time, and why some countries are rich and others poor.
Besides, over policy and practice cases, students learn to explore specific examples of actual policies and how they were executed, such as how the US Federal Reserve uses the Taylor rule, nonconventional monetary policy during the 2007—2009 financial crisis, and the political business cycle.