Macroeconomic Theory and its Application

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Enrolled: 299 students
Duration: 12 Weeks 180 Hours
Lectures: 12
Level: Advanced

The global pandemic closures of 2020 have had significant implications for the lives of many people around the world. In some countries, especially in the west, social schemes such as the furlough were used by governments to keep employees earning and their economies afloat by providing up to 80% of lost income to employees.

This required a combination of fiscal and monetary adjustments. Other countries rolled out schemes not as robust and a lot later in response. A few African countries asked for help from the richer countries or took out loans from the IMF. In this time, we have paid attention and heard questions asked such as how can some countries provide such robust and immediate support while others lagged? Why is youth unemployment rising exponentially with no cure in sight? What are the future implications for those economies that have borrowed heavily and the global economy as a whole? What makes nations wealthy? These are some of the questions that this course attempts to answer.

Countries like Nigeria continue to see their currency devalued with the rate of this devaluation and inflation higher in the last 5 years than any time in its history. The price of some of the commodities on her markets, especially imported ones are higher or the same price of those commodities in more advanced economies. Yet the average income per capita or purchasing power per capita is far lower in Nigeria than in the UK. Prices of locally produced commodities have been forced upwards, perhaps because for those producers to attain the purchasing power of other (imported) commodities on the market, they would have to increase the price of the ones they produce locally. A spiraling effect occurs such that prices or inflation continue to rise with unemployment as its currency simultaneously loses value.

Is currency devaluation a good or bad thing? What percentage of goods and services are locally produced compared to what is imported to have such an effect on the economy? Why does the currency continue to be devalued? What is the difference between an import-dependent (consumer) economy and a net exporter economy? What roles do Bureau De Change’s (BDC’s) play in the money supply? What metric do we follow when measuring well-being, GDP, or a happiness index? These are some of the questions that this course attempts to answer.

The study of macroeconomic theory and practice on this online course is closely related to real-world events as we have kept theoretical exposition close to experience such that you can relate it to contemporary issues of interest and importance. This online course is designed to encourage engaged and critical thinking about topics in macroeconomics providing a variety of viewpoints including classical and Keynesian, but also monetarist, classical – Keynesian synthesis, new classical and post Keynesian approaches such as the Austrian viewpoint of Hayek’s school of economics, and the new area of complexity economics.

Within the broad themes of social and environmental well-being and sustainability, attention is repeatedly given to issues of inequality, globalization, unpaid work, technology, the environment as well as the financialization of the economy, the Great Recession, and its aftermath. Students will be able to use the knowledge gained to understand everyday macroeconomic events as well as being able to apply the knowledge gained to higher-level studies in macroeconomics.

1. Introduction - How to Organize Economies

1
An Overview of Economic Systems, Useful Tools and Concepts, the Four Essential Economic Activities, Choice in a World of Scarcity

2. Supply and Demand

1
Markets and Macroeconomics, the Theory of Supply, Demand and Market Adjustments, Equilibrium, the Four Step Process

3. Measuring the Size of the Economy

1
Gross Domestic Product, How Well GDP measures the Well-Being of Society, Comparing GDP among Countries, Measuring Household Production, Measuring Economic Well-Being, Understanding Aggregate Behaviour

4. Employment and Unemployment

1
Measuring Employment and Unemployment, Various of Theories of Unemployment, Patterns of Unemployment, what Causes Changes in Unemployment Over the Short -Term Run or Over the Long-Term Run?

5. Aggregate Demand and Economic Fluctuations

1
The Business Cycle, Aggregate Demand, the Keynesian Model, Inflation, the Confusion over Inflation

6. Fiscal Policy

1
The Role of Government Spending and Taxes, Budgets, Deficits, and Policy Issues, Using Fiscal Policy to Fight Recession, the Question of Balanced Budgets.

7. Monetary Policy

1
The Theory of Money, Prices, Inflation, Complications with Monetary Policy and Controversies, the role of Banks and the Central Bank, How Banks create Money, How Central Banks Execute Monetary Policy.

8. Aggregate Demand / Aggregate Supply Model and Inflation

1
Inflation and Aggregate Demand Equilibrium, Shifts in Aggregate Demand, Shifts in Aggregate Supply, How the AD/AS Model incorporates Growth, Unemployment, and Inflation.

9. Varying Perspectives In Economics

1
the Keynesian Perspective, the Neoclassical Perspective, the Traditional Economics Perspective, Friedrich Hayek and the Austrian School of Economics, Say’s Law.

10. How Economies Grow and Develop in the 21st Century

1
Economic Growth and Development, Defining Poverty, Economic Development in the World Today, 21st Century Reconsiderations of the Sources of Economic Growth, Growth, Inequality and Development, Different kinds of Economies

11. Behavioral Economics

1
The Nature of Behavioural Economics as a Discipline, Core principles, Decision making by Human Agents, Values, Preferences, Choice, Belief, Heuristics and Biases, Behavioural Game Theory

12. Complexity Economics

1
Introduction to the Theory of Complexity Economics, Nonlinear Economics, Feedback Loops, Non-Equilibrium Patterns, Network Theory, Complex Adaptive Systems Theory, Fitness Landscape, Why Does Economics Need this Different Approach? Can Complexity Economics Save the World?
Yes, You can. On the payment page, select wire transfer and select the account details next to the currency you wish to pay. Work out the equivalent amount published on https://www.abokifx.com and make the payment. For example, On the 7th of September 2021, the Nigerian Naira to the British Pound was £1 - N745. You may choose to contact admin@ps2.education for an invoice payable at designated branches.
Textbooks can be expensive costing between £50 - £150 for some courses. They are also difficult to get delivered to some locations in the world, especially in Africa. We have taken this into account and will provide you with all the textbooks and reading material for all of our courses
There are prerequisites to this course. Please see programme details for further information.
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