Understand the global issues of economic health.
An economy doesn’t function in isolation. What happens overseas doesn’t stay overseas. Economies are, to a large degree, interdependent. Understanding what’s happening abroad can better inform your company’s decisions at home.
Every country’s economy is subject to the same stresses. When macroeconomic issues are viewed globally, it becomes apparent that one country’s failing economy can impact other countries, just as the Greek debt crisis affected its creditor nations.
In ECO 583, you’ll examine how macroeconomic events and policies, both national and global can shape the strategic decisions in a business organization. You’ll see how macroeconomic data is analyzed and the role is plays in the managerial decision-making process.
This entire course will be taught against the backdrop of current economic downturn and financial crisis. To gain insight in global macroeconomics, you’ll analyze the varied factors that can affect the health of an economy.
- Economic fluctuations
- Governments’ economic policies
- Budget deficit
- National debt
- Trade deficit
- International linkages
Explore this and more in ECO 583.
The entire course will be taught against the backdrop of current economic downturn and financial crisis. The determination of output is the fundamental issue of macroeconomics and you’ll examine it through the Keynesian cross model, which considers the goods market in isolation. You’ll also become familiar with the IS-LM model developed by the British economist John Hicks. This model helps analyze macroeconomic policy analysis by bringing together the goods market and the financial market.
Your analysis of global macroeconomics will be built around equilibrium in three markets — goods, financial, and labor. You’ll explore each in detail, appreciating that the labor market generates an equilibrium rate of unemployment and an equilibrium real wage, independent of the goods and financial markets.
You’ll see how aggregate demand and aggregate supply (the AD-AS framework) unites all three markets in general equilibrium, in both the short and medium run. Just like the IS-LM model, the AD-AS framework provides a key graphical framework that you’ll use throughout the course.
The concept of the Phillips curve illustrates the trade off between unemployment and inflation, showing that if the Federal Reserve Board or any central bank wishes to reduce the inflation rate, it cannot do so without increasing the unemployment rate above the natural rate. This aggregate supply relation, when combined with the aggregate demand relation, makes up Okun’s law. You’ll learn how this framework allows for analysis of monetary policy decisions closely related to real issues.
Expectations about the future play a very important role in macroeconomic policies and their outcomes. You’ll see the distinction between real and nominal interest rate and discuss the Fisher hypothesis that analyzes the effect of money growth in the medium run.
An open economy allows domestic residents to choose between domestic and foreign goods and between domestic and foreign assets. As a class, you’ll collectively develop and analyze an open economy macroeconomic model.
Expand Your Knowledge
In addition to the Wall Street Journal and the New York Times, especially Paul Krugman’s columns, there are number of sources for current macroeconomic data.
- Federal Reserve Economic Data (FRED)
- Bureau of Labor Statistics
- Bureau of Economic Analysis
- International Monetary Fund (IMF)
Sample Course Topics
- Introduction to Macroeconomics
- Measuring Key Macroeconomic Variables
- Equilibrium in Goods and Financial Markets
- IS-LM Model
- Labor Market
- Aggregate Demand
- Aggregate Supply
- Phillips Curve, Inflation and Disinflation, and Economic Crisis
- Monetary Policy Revisited, Expectations and Financial Market
- Introduction to Open Economy
- Mundell-Fleming Model of an Open Economy
- Debt and Deficit
- Introduction to Economic Growth
What You’ll Learn
In ECO 583, you’ll examine how macroeconomic events and policies, both national and global, can shape the strategic decisions in a business organization.
- Access and analyze macroeconomic data.
- Appreciate the critical issues pertaining to domestic and global macroeconomic environments.
- Use an analytical framework to understand and analyze current macroeconomic events.
- Understand and apply analytical macroeconomic models to evaluate macroeconomic policies.
As goes the health of the global economy, so goes the health of business. For more information about The University of Scranton’s online Master of Business Administration degree, request more information or call us today toll-free at (866) 373-9547.
The content presented on this page is representative information for example purposes and is subject to change as course and student needs change over time.