Macroeconomics

Macroeconomics The objective of this course is to introduce the student to macroeconomics as a separate discipline within Economics. Specifically within the context of management education, the course aims to highlight the feature that the performance of a firm is not independent of economy-wide outcomes. The focus of the course is on the determination of the central macroeconomic variables. This is a course in economic theory. In the instruction, recourse to case material will be minimal. However, its express intention is to enable the student to access current discussions on macroeconomic issues in the public domain internationally. Essential topics * National-Income accounting * Macroeconomic equilibrium * Saving, Investment and their respective roles in the short run * Aggregate demand and its components * The investment multiplier * Monetary and fiscal policy: potential and limitation * The macroeconomic consequence of openness * The balance of payments * Capital mobility and its implication * Macroeconomic stabilisation in an open economy The textbook used in 2002 was ‘Macroeconomics’ by Dornbusch and Fischer.