This module develops the theory of aggregate supply and examines the short-run relationship between inflation and unemployment. You will study the basic theory of aggregate supply and the Phillips curve. An appendix extends the material through an integrated model called “The Mother of All Models.”

This module develops a dynamic model for analyzing economic fluctuations. You will identify the elements of the model, examine how it is solved, and use it to study macroeconomic outcomes. The module also considers two applications to monetary policy and concludes by connecting the framework to DSGE models.

This module examines competing perspectives on the conduct of stabilization policy. You will consider whether policy should be active or passive and whether it should follow rules or rely on discretion. An appendix extends the discussion to time inconsistency and the tradeoff between inflation and unemployment.

This module examines government debt and budget deficits from several perspectives. You will consider the size and measurement of government debt, the traditional view of debt, the Ricardian view, and other perspectives. By the end of the module, you will be able to compare different ways of interpreting government debt.

This module examines the role of banks and central banks in the monetary system. You will study how banks participate in the monetary system, how central banks influence the money supply, and the Federal Reserve's current monetary regime. These topics connect the banking system to the conduct of monetary policy.