Learn how money, inflation, and international economic relationships influence macroeconomic outcomes. Drawing on content from N. Gregory Mankiw, author of Macroeconomics, published by Macmillan Learning, this course connects monetary concepts with saving, investment, and exchange rates in an open economy.

You will examine what money is, how its quantity is measured, and how the money supply is controlled. You will then use the quantity theory of money to study inflation, seigniorage, interest rates, money demand, hyperinflation, and inflation’s social costs. You will also analyze international flows of capital and goods, saving and investment in a small open economy, and the role of exchange rates. Comparisons with a large open economy extend these ideas to different economic settings. Through readings and practice problems, you will connect monetary and open-economy concepts with economic models. The course includes approximately ten and a half hours of learning material and builds on national-income and basic macroeconomic concepts. This course is part of the Macroeconomics in a Global Context Specialization and can also be taken independently.