Macroeconomics: Theory and Policy from edX

The course starts with the understanding of the basic accounts and indicators of the economy. Then the course proceeds with the theories of consumption, savings and investment. Then we understand how shifts in aggregate demand and aggregate supply affect the overall economic outcomes such as growth and inflation. Then the focus shifts on the government and its fiscal policies, taxation and the sort of impact it has on economy. We touch upon indicators like fiscal deficit, revenue deficit, primary deficit and look at issues like fiscal sustainability and public debt and how they impact the economy. We also touch upon the role of Central banks and how it affects the monetary policy of the economy. We discuss the various monetary tools and policies and contextualise the interest rates and liquidity available in the economy. The last module deals with a country’s engagement with the world through trade and capital flows where we discuss external sector accounts, imbalances that a country may have, exchange rates and capital flows. This will help to look at an economy and its integration with the rest of the world.

What you'll learn

At the end of this course, you will:

Understand the various theories of economics with regards to Keynesian and Classical.
Interpret how the various components of economics like Inflation play a major role in the growth of an economy.
Understand the circular flow of income and and the determinants of its various components like savings, consumption and investment.
Deduce the importance of monetary and fiscal policies and how it affects the developed and developing countries.

What's inside

Learning objectives

Understand the various theories of economics with regards to keynesian and classical.
Inflation play a major role in the growth of an economy.

Understand the circular flow of income and and the determinants of its various components like savings, consumption and investment.
Deduce the importance of monetary and fiscal policies and how it affects the developed and developing countries.

Understand the various theories of economics with regards to keynesian and classical.
Inflation play a major role in the growth of an economy.
Understand the circular flow of income and and the determinants of its various components like savings, consumption and investment.
Deduce the importance of monetary and fiscal policies and how it affects the developed and developing countries.

Syllabus

Week 1: Basic accounts and indicators of our economy.

National Income Accounting

Circular Flow of Income

Measuring GDP

Twin Deficit Identity

Price Indices

Employment Indicators

Poverty and Inequality

Week 2: Consumption and Savings

Introduction to Keynes

Keynesian Equilibrium

The Multiplier

Alternative Theories of Consumption

Determinants of Investment

Week 3: Aggregate Demand and Supply

Aggregate demand

Aggregate supply

Equilibrium

Managing the economy

Case studies

Inflation and Deflation

Growth

Week 4: Fiscal Policy

Terms and definitions

Financing the deficit

Public debt

Developed and developing country issues

Pandemic fiscal policy

Fiscal reforms in India

Week 5: Monetary Policy

Definition and transmission

Money supply process

Instrument of monetary policy

Instruments in India

Foreign transactions

Monetary policy targets and effectiveness

Demonetization in India

Week 6: Open Economy

Balance of payments

Exchange rates

Exchange rate regimes

Indicators of exchange rates

Convertibility

Open economy and India

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Teaches learners how to think like macroeconomists and equips them with methods to analyze economies

Provides a solid understanding of economic theories, providing the foundation for advanced study

Covers a wide range of economic concepts, including national income accounting, inflation, monetary and fiscal policy, and international trade

Taught by instructors who are experts in their field, providing learners with access to the latest economic research and insights

May be useful for learners who are seeking a comprehensive overview of macroeconomics

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Macroeconomics: Theory and Policy with these activities:

Watch video tutorials on economics.

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This will help you to learn about economics in a more interactive and engaging way.

Browse courses on Economics

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Find video tutorials on economics on YouTube or other video sharing platforms.
Watch the tutorials and take notes.

Review 'Macroeconomics' by Olivier Blanchard

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This book is one of the most widely used textbooks in macroeconomics and will provide you with a solid foundation in the subject.

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Read the first two chapters of the book to get an overview of the subject.
Work through the practice problems at the end of each chapter to test your understanding.

Practice solving economic problems.

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This will help you to improve your problem-solving skills and to apply your knowledge of economics to real-world situations.

Browse courses on Economics

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Find practice problems online or in textbooks.
Work through the problems and check your answers.

Six other activities

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Attend networking events for economists.

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This will help you to connect with other economists and to learn about career opportunities.

Browse courses on Economics

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Find networking events for economists in your area.
Attend the events and introduce yourself to other economists.

Volunteer for an organization that works on economic issues.

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This will help you to gain practical experience in economics and to make a difference in your community.

Browse courses on Economics

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Find an organization that works on economic issues in your area.
Contact the organization and ask about volunteer opportunities.

Create a data visualization that illustrates a key economic trend.

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This will help you to visualize and understand the trend and to communicate it to others.

Browse courses on Economics

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Choose a key economic trend to illustrate.
Gather data on the trend.
Choose a data visualization tool and create your visualization.

Attend workshops on economics.

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This will help you to learn about new economic research and to develop your skills.

Browse courses on Economics

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Find workshops on economics in your area.
Attend the workshops and participate in the discussions.

Start a blog or website about economics.

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This will give you a chance to apply your knowledge of economics in a practical way and to share your insights with others.

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Choose a topic for your blog or website.
Create a content calendar and start writing posts.
Promote your blog or website on social media and other online channels.

Create a video tutorial explaining a key economic concept.

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This will help you to deepen your understanding of the concept and to share your knowledge with others.

Browse courses on Economics

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Choose a key economic concept to explain.
Write a script for your video tutorial.
Record and edit your video tutorial.
Upload your video tutorial to YouTube or another video sharing platform.

Career center

Learners who complete Macroeconomics: Theory and Policy will develop knowledge and skills that may be useful to these careers:

Economist

Economists study and analyze economic data to make predictions about the economy. The theories of economics, such as Keynesian and Classical, are covered in this course. This is crucial knowledge for Economists to understand.

See salaries and explore the career path for Economist

Quantitative Analyst

Quantitative Analysts develop and implement mathematical and statistical models to analyze financial data and make investment decisions. This course covers topics such as econometrics and financial modeling, which are essential for Quantitative Analysts to understand.

See salaries and explore the career path for Quantitative Analyst

Policy Analyst

Policy Analysts research and analyze public policies to make recommendations for improvement. This course covers topics such as fiscal and monetary policy, which are essential for Policy Analysts to understand.

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Wealth Manager

Wealth Managers provide comprehensive financial planning and investment management services to high-net-worth individuals and families. The material covered in this course, such as portfolio management and retirement planning, is very relevant to Wealth Managers.

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Budget Analyst

Budget Analysts help organizations create and manage their budgets. As this course covers topics like fiscal policy and public debt it is a great way to build a foundation for a career as a Budget Analyst.

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Tax Accountant

Tax Accountants prepare and file tax returns for individuals and organizations. This course covers topics such as tax laws and regulations, which are essential for Tax Accountants to understand.

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Personal Financial Advisor

Personal Financial Advisors help individuals manage their finances and plan for the future. This course covers topics such as savings, investment, and retirement planning, which are essential for Personal Financial Advisors to understand.

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Portfolio Manager

Portfolio Managers manage investment portfolios for individuals and organizations. This course covers topics such as asset allocation and risk management, which are essential for Portfolio Managers to understand.

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Stockbroker

Stockbrokers execute trades for clients on the stock market. This course covers topics such as investment analysis and portfolio management, which are essential for Stockbrokers to understand.

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Risk Manager

Risk Managers identify and assess risks faced by organizations and develop strategies to mitigate those risks. This course covers topics such as monetary policy and economic growth, which are important factors in risk management.

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Loan Officer

Loan Officers assess the creditworthiness of potential borrowers and make lending decisions. This course covers topics such as monetary policy and interest rates, which play a vital role in the loan industry.

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Bank Examiner

Bank Examiners are responsible for ensuring that banks are following regulations and laws, and are financially sound. This course may be useful for someone in this career, as it covers topics such as fiscal and monetary policy, which are essential for understanding the banking industry.

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Financial Analyst

Financial Analysts provide advice to individuals and organizations on investment decisions. This course may be useful to those aspiring to become Financial Analysts as it covers macroeconomics, which is essential for understanding the financial markets.

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Real Estate Analyst

Real Estate Analysts analyze real estate markets and trends to make investment recommendations. This course covers topics such as economic growth and inflation, which are important factors in real estate analysis.

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Market Research Analyst

Market Research Analysts study market conditions and trends to help businesses make informed decisions. This course covers topics such as inflation and economic growth, which are important factors in market research.

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