The purpose of this course is to provide an introduction to macroeconomic theories and policies since the turn of the century. Macroeconomic theories can be divided into two main schools of thought. Classical economics provides us with tools that allow us to exam the long-run implications associated with monetary and fiscal policies. Keynesian economics is concerned with analyzing the consequences of monetary and fiscal policies in the short-run.
All newer theories have roots in one of the two major schools of thought.
My main goal is to provide you with the necessary tools to explain current and historic macroeconomic events, and to predict the likely qualitative impact of various policy initiatives. This means having a full understanding of the major assumptions behind the models, and the limitations of the models. Remember that the study of economics is the study of choices and the costs or tradeoffs associated with those choices. Given the composition of the class there are two special topics which I will cover. Growth theory and open-economy macroeconomics which seems to be of particular interest to international students and to students majoring in international relations.