|The point of this course is to develop an understanding of how macroeconomic variables (e.g., GDP and its components, employment, interest rates, exchange rates and inflation) are jointly determined over periods of time that correspond to the business cycle. Of particular interest will be the response of these variables to changes in fiscal and monetary policy, supply shocks, and changing economic conditions in the rest of the world.
The basic material will be theoretical. However, practical use will be emphasized in a group project designed around a mock meeting of the Federal Reserve's Federal Open Market Committee. Thus, familiarity with current economic conditions and empirical evidence will be stressed throughout the course.