In this course,
we will examine the main bodies of economic theory that have been used to guide
economists’ and policy makers’ understanding of the macroeconomy. Macroeconomics
is a word derived from the Greek prefix “makros”, meaning large. It is the study
of economic aggregates, of national and international economies and of the
economic management role played by governments and international organisations.
The founder of
modern macroeconomics, the British economist John Maynard Keynes, famously wrote
“The ideas of economists and political philosophers, both when they are right
and when they are wrong are more powerful than is commonly understood. Indeed,
the world is ruled by little else. Practical men, who believe themselves to be
quite exempt from any intellectual influences, are usually slaves of some
defunct economist.” This will be the key theme we explore in the course, the
influence of theory and the way that policy responses to events like recession,
unemployment, inflation and the Global Financial Crisis, reflect that theory.
We will cover
important macroeconomic concepts such as the national accounts, unemployment
and inflation, explain how the ideas associated with John Maynard Keynes laid
the foundation for governments’ active management of the macroeconomy in the
post war era, and examine the intellectual basis for the monetary and fiscal
policy responses to the Global Financial Crisis. Economists’ approaches to the analysis of
long run economic growth will also be considered. The approach will be
critical. There are few areas of human endeavour that attract so much debate
and disagreement as the management of a modern industrial economy. We will not
shy away from those debates. But what we will do is emphasise the systematic
theorising that underlies the way macroeconomists and policy makers approach
their task. The aim is to enable those who take the course to become informed
analysts of the macroeconomy and of current (and past) macroeconomic policy
Image source: Nilss Olekalns University of Melbourne 2012
The overall aim of this subject is to provide an introduction to macroeconomic theory and policy, economic aggregates such as aggregate production and employment, the general level of prices and inflation, the exchange rate, the volume of money and the balance of payments. Analysis is particularly directed to models of an open economy and to current economic problems and policy issues.
completed this course, spending 3 hours a week on it and found the course difficulty to be medium.
Too bad this course is no longer available . It was a deep dive in Macroeconomics , clearly explained and progressing step by step to aggregate more knowledge every week . Pr Olekalns offers a clear synthesis on a complex subject .