Macroeconomics for a Sustainable Planet from edX

Unemployment. Inflation. Protectionism. Trade barriers. Fiscal deficit. These are not just terms in an economics textbook or in newspaper headlines. These real-life challenges carry societal and environmental implications for billions of people around the world. How do we balance the pursuit of economic growth with the right of all people to thrive on an increasingly fragile planet? To answer this question, we must reframe our understanding of macroeconomics in the context of a highly interdependent world.

Led by two leading economic minds – Columbia University Professor and Senior UN Advisor Jeffrey Sachs and former Chilean Minister of Finance Felipe Larraín – this massive open online course explores traditional macroeconomic principles and tools, updated for the age of sustainable development and the current wave of globalization. Is a thriving global economy possible in an equitable and environmentally thoughtful way? Find out here.

This course is for:

Graduate students and advanced undergraduate students studying international development, economics and/or sustainable development
Economists interested in the balance of macroeconomic principles and ESG (environmental, societal and governance) criteria
Sustainable development practitioners – as well as private-sector actors, such as those who work in the financial sector – who need to understand the economic models that support and depend on sustainable development

What's inside

Learning objectives

Gdp and well-being: how do we measure progress? are those measures enough?
The changing labor market: digitization, unemployment trends,and the minimum wage
Sustainable investment principles

Theories of business investment and how these relate to consumption and saving
New economic principles which internalize social capital and environmental impact

Gdp and well-being: how do we measure progress? are those measures enough?
The changing labor market: digitization, unemployment trends,and the minimum wage
Sustainable investment principles
Theories of business investment and how these relate to consumption and saving
New economic principles which internalize social capital and environmental impact

Syllabus

Module 1: Introduction to Macroeconomics

Introduction

Macroeconomic Pathologies

21st Century Perspectives on Macroeconomics

International Comparisons of Income

GDP & Well-Being

Module 2A: Output Determination & Employment

Full-Employment Economy

Deriving GDP | Part I

Deriving GDP | Part II

Labor & Saving | Part I

Labor & Saving | Part II

Module 2B: Output Determination & Employment

Economic Growth

Partial-Employment Economy

Business Cycles

Aggregate Demand Management

Problems with Aggregate Demand Management

Output Determination in the IS-LM Model

Module 3: Labor Markets

Labor Markets, Concepts, Definitions & Groups

Labor Market Institutions: Minimum Wages, Unionization & Contracts

Costs of Unemployment, Digitization of Labor, Informality & Underemployment

Module 4: Money & Central Banking

Money vs. Barter: History & Concepts

Money Demand

Money Supply: the Role of the Central Bank

The Central Bank: New Approaches to Monetary Policy

Module 5: Exchange Rates

Exchange Rate Arrangements

PPP & Interest Rate Arbitrage

The Real Exchange Rate & the Role of Non-Traded Goods

Monetary Policy: Fixed & Floating Exchange Rates

Currency Crises

Module 6: Financial Markets & Crises

Bank Runs & Panics | Part I

Bank Runs & Panics | Part II

Preventing Bank Runs

Bubbles & Crashes

Managing Insolvencies

When Governments Go Broke

Module 7: Inflation, Unemployment & Stabilization

Inflation, the Fiscal Deficit & Seigniorage

The Costs of Inflation

Inflation, Unemployment & the Phillips Curve

Stabilization Themes

Module 8: Consumption, Saving & Investment

Consumption, Saving & the Intertemporal Budget Constraint

Permanent Income Consumption Theory

Life Cycle Model of Consumption & Saving

Investment

Basic Theory of Business Investment

Module 9: Fiscal Policy and Institutions

Budget, Public Revenues & Expenditures

Saving, Investment, the Fiscal Deficit & Management of Public Debt

Interactions Between Public & Private Sectors

Fiscal Institutions & Policies

Module 10: Open Economy Issues

Aggregate Demand in an Open Economy

Aggregate Demand with a Flexible Exchange Rate

Aggregate Demand with a Fixed Exchange Rate

The Current Account & External Indebtedness

The Intertemporal Budget Constraint of a Country

Module 11: Economic Growth

Economic Growth in History, Patterns & Sectors

Sources of Economic Growth

Solow’s Growth Convergence Model

Growth & Inequality

Growth Traps

Module 12: Globalization

What is Globalization?

Development of the Global Economic System

Globalization of Population Systems

Crises of Poverty & Inequality

Challenge of Sustainable Development

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores macroeconomic principles with real-world challenges, which is standard in macroeconomics curriculum

Focuses on sustainable development and globalization, which is highly relevant to current economic issues

Designed for advanced learners and professionals in fields related to economics and development, indicating a higher level of rigor

Taught by renowned economists Jeffrey Sachs and Felipe Larraín, who are respected in the field of macroeconomics and sustainable development

Covers a range of topics from traditional macroeconomic principles to emerging issues like climate change and social capital

Offers a comprehensive understanding of macroeconomics in the context of the global economy and sustainable development

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 for a Sustainable Planet with these activities:

Review GDP and Well-being

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Identify the basics of GDP and wellbeing indices to prepare for this course's deeper dive into these concepts.

Browse courses on GDP

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Read the article, 'GDP and Well-being: Measuring what matters?'
Define GDP and list its components
Explain how GDP is used to measure economic growth
Discuss the limitations of GDP as a measure of well-being
Identify alternative measures of well-being, such as the Human Development Index

Join a study group

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Enhance understanding and critical thinking through collaborative learning with peers.

Browse courses on Macroeconomics

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Form a study group with classmates
Meet regularly to discuss course material
Work together on assignments and projects

Explore the Phillips Curve

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Become familiar with the Phillips curve and its implications for policymakers.

Browse courses on Inflation

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Watch the video, 'The Phillips Curve: A Simple Explanation'
Read the article, 'The Phillips Curve: A Primer'
Use the interactive tool, 'The Phillips Curve Simulation'
Discuss the strengths and weaknesses of the Phillips curve
Apply the Phillips curve to a real-world example

Five other activities

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Solve macroeconomic problems

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Develop problem-solving skills by applying macroeconomic concepts to real-world scenarios.

Browse courses on Macroeconomics

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Review macroeconomic concepts
Solve practice problems from a textbook or online resources
Check your answers and identify areas for improvement

Attend a workshop on sustainable development

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Gain practical insights and networking opportunities by attending an industry workshop on sustainable development.

Browse courses on Sustainable Development

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Research and identify relevant workshops
Register for a workshop that aligns with your interests
Attend the workshop and actively participate in discussions

Write a blog post on sustainable investment

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Build knowledge and the ability to articulate concepts by writing about sustainable investment principles and their practical implications.

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Research sustainable investment strategies
Identify the benefits and challenges of sustainable investing
Write a blog post that explains sustainable investment to a general audience
Share your blog post on social media

Read 'The Economics of Climate Change'

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Gain a comprehensive understanding of the economic impacts of climate change and potential policy solutions.

View Climate Action to Unlock the Inclusive Growth... on Amazon

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Read chapters 1-3 of the book
Summarize the main arguments of the book
Evaluate the strengths and weaknesses of the book's analysis

Contribute to an open-source economic modeling project

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Gain hands-on experience in economic modeling and contribute to the broader research community by collaborating on an open-source project.

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Identify an open-source economic modeling project
Review the project's documentation and code
Identify a potential area for contribution
Make a contribution to the project

Career center

Learners who complete Macroeconomics for a Sustainable Planet will develop knowledge and skills that may be useful to these careers:

Macroeconomist

Macroeconomists work at central banks, government agencies, and research institutions to study the economy at a national, regional, or global level and provide insights to policymakers. This course may be useful in your career by providing a solid foundation in macroeconomic principles and tools, as well as an understanding of how labor markets, money, central banking, and international economic dynamics affect the broader economy.

See salaries and explore the career path for Macroeconomist

ESG Analyst

ESG Analysts research and assess the environmental, social, and governance (ESG) performance of companies. They provide insights to investors and other stakeholders on the sustainability of companies and their adherence to ESG principles. This course can be useful in your career by providing a foundation in macroeconomic principles and tools, sustainable investment principles, and theories of business investment. Additionally, the course offers insights into new economic principles which internalize social capital and environmental impact, which are of primary importance to ESG Analysts.

See salaries and explore the career path for ESG Analyst

Chief Sustainability Officer

Chief Sustainability Officers are responsible for developing and implementing sustainability strategies for their organizations. They work to reduce environmental impact, improve social performance, and promote economic sustainability. A background in macroeconomic principles and tools, sustainable investment principles, and theories of business investment will be necessary for success in this role. This course may be useful by providing a foundation in all of these areas, as well as informing on the latest economic principles which internalize social capital and environmental impact.

See salaries and explore the career path for Chief Sustainability Officer

Sustainability Consultant

Sustainability Consultants develop and implement sustainability strategies for businesses and organizations. They help organizations understand their environmental and social impacts. A solid understanding of macroeconomic principles, theories of business investment, and new economic principles which internalize social capital and environmental impact will all be necessary for this role. This course may be useful by offering a framework and background in all of these areas.

See salaries and explore the career path for Sustainability Consultant

Sustainability Analyst

Sustainability Analysts evaluate the sustainability performance of companies or organizations. Understanding the environmental and social impacts of stocks and funds is essential for the role, and this course may be useful by providing you with a framework for understanding new economic principles which internalize social capital and environmental impact.

See salaries and explore the career path for Sustainability Analyst

Sustainability Manager

Sustainability Managers develop and implement sustainability programs for their organizations. They work to reduce environmental impact, improve social performance, and promote economic sustainability. This course can be useful in this role by providing a foundation in macroeconomic principles and tools, sustainable investment principles, and theories of business investment. Additionally, the course introduces new economic principles which internalize social capital and environmental impact, which are an increasingly important consideration for organizations.

See salaries and explore the career path for Sustainability Manager

Venture Capitalist

Venture Capitalists provide capital to early-stage, high-potential companies. They must have a strong understanding of macroeconomic trends as well as firm performance and investment principles. The ability to analyze theories of business investment and strategies for economic growth will also be essential to the role. This course may be useful in your career by providing a strong foundation in all of these areas.

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Policy Analyst

Policy Analysts research, analyze, and make recommendations on policy issues. For Policy Analysts focused on economic policy, a course providing macroeconomic principles and tools, new economic principles which internalize social capital and environmental impact, and frameworks for analyzing and addressing problems with unemployment and inflation will all be useful. This course can help build a foundation and provide valuable knowledge across these areas.

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Environmental Economist

Environmental Economists use economic theory and econometric tools to understand how the economy and the environment interact. They study areas such as pollution, climate change, natural resource management, and environmental policy. This course can help build a foundation for an Environmental Economist by providing a deep understanding of macroeconomic principles, theories of business investment, and sustainable investment principles - all of which are essential to the field of Environmental Economics.

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Investment Banker

Investment Bankers help companies raise money by issuing debt or equity. To perform this job effectively, an understanding of firm performance, economic conditions, and investment principles is essential. This course may be useful in your career by providing knowledge of macroeconomic principles and tools and theories of business investment. Additionally, new economic principles which internalize social capital and environmental impact are increasingly being considered in investment banking, so this course can help future and current Investment Bankers stay up-to-date on the latest trends in their field.

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Research Associate

Research Associates conduct research on a variety of topics, including economics, public policy, and social issues. They analyze data, write reports, and present their findings to clients or other stakeholders. This course may be helpful in your career by teaching the macroeconomic principles and tools, consumption and saving, and labor market dynamics necessary to perform these tasks.

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Financial Analyst

Financial Analysts study the performance of stocks and make recommendations to clients or use this information as the basis for the company's investments. The ability to analyze company and market data and make investment decisions based on economic principles is essential to this role. This course can be helpful by providing a background in macroeconomic principles and tools, sustainable investment principles, and theories of business investment. Additionally, new economic principles which internalize social capital and environmental impact are becoming increasingly important in the field, making this course especially relevant for current and future Financial Analysts.

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Development Economist

Development Economists analyze factors that promote or hinder economic development and suggest policies to accelerate growth and reduce poverty. A strong foundation in core macroeconomic principles and tools is necessary to build a robust model to analyze and promote global economic growth. Sustainable investment principles are also crucial for developing plans that promote environmental sustainability alongside economic growth. This course may be useful in your career by offering these essential tools used on a day-to-day basis by Development Economists.

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Urban Planner

Urban Planners devise plans and programs that help local governments manage the physical development of communities. They must have a strong understanding of economic development and the interrelationship between land use and transportation. This course can help build a foundation in macroeconomic principles and tools, fiscal policy and institutions, and open economy issues, all of which are important considerations for planning the development of sustainable communities.

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Economist

Economists study how societies allocate resources and make decisions. As such, a course exploring the balance of macroeconomic principles and ESG criteria can be useful for an Economist who wants to better understand sustainable business practices or for an individual looking to pivot into this kind of work.

See salaries and explore the career path for Economist