MACROECONOMIC THEORY AND POLICY

The purpose of this course is to introduce students to current issues in macroeconomic management. The course examines the policy dilemmas confronting authorities in developing and emerging market economies, and the options available to policymakers, with special attention to how financial sector issues interact with macroeconomic management. The course will cover macroeconomic topics of current interest, such as stabilization and growth, fiscal and external debt sustainability, inflation targeting and other frameworks for monetary policy, fiscal policy, choice of the exchange rate regime and international capital flows. It will explore both the theoretical debates and the practical issues faced by policymakers. Participants are encouraged to reflect on what goes on in their respective countries (and compare experiences) as we discuss the various issues.                                                                                                                                                                                                                                                          Objectives: Macroeconomics Theory and Policy will enable students to understand: (a) Macroeconomic theory of international trade and finance; (b) The macroeconomic policy issues raised by globalization; (c) Economic growth in developing and transitional economies; (d) The macroeconomic theories of the behavior of households and firms; (e) The macroeconomics of long-run growth; and (f) Current macroeconomic issues and policy debates.