This course examines macroeconomic performance in the short and long run based on the economy’s institutional and policy environment. First, we will develop a model of macroeconomy in the short run when the price level has its own momentum and does not respond much to supply and demand forces. Then, we’ll begin analyzing the long-run equilibrium by examining the foreign exchange market. The third module examines the drivers of aggregate output in the long run and the mechanisms of adjustment from the short run to the long run. Finally, we will discuss the characteristics of desirable macroeconomic policies and the reasons why actual policies deviate from them.
This course is part of the Managerial Economics and Business Analysis Specialization
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Managerial Economics and Business Analysis SpecializationUniversity of Illinois at Urbana-ChampaignAbout this Course
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Course 4 of 7 in the
Beginner Level
Approx. 17 hours to complete
English
Subtitles: Arabic, French, Portuguese (European), Italian, Vietnamese, German, Russian, English, Spanish
Flexible deadlines
Reset deadlines in accordance to your schedule.
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Course 4 of 7 in the
Beginner Level
Approx. 17 hours to complete
English
Subtitles: Arabic, French, Portuguese (European), Italian, Vietnamese, German, Russian, English, Spanish
Offered by
University of Illinois at Urbana-Champaign
The University of Illinois at Urbana-Champaign is a world leader in research, teaching and public engagement, distinguished by the breadth of its programs, broad academic excellence, and internationally renowned faculty and alumni. Illinois serves the world by creating knowledge, preparing students for lives of impact, and finding solutions to critical societal needs.
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This course is part of the 100% online Master of Business Administration (iMBA) from University of Illinois at Urbana-Champaign.
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Syllabus - What you will learn from this course
2 hours to complete
Course Orientation
You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.
2 hours to complete
2 videos (Total 7 min), 5 readings, 1 quiz
5 hours to complete
Module 1: Aggregate Expenditure and GDP in the Short Run When Prices Are "Sticky"
What determines the GDP? In the previous course on Macroeconomic Variables and Markets, we saw how the exchange rate and the interest rate are determined given the real income, aggregate price level, and expectations about the future. This module focuses on GDP determination in the short run, which is a critical step in understanding macroeconomic fluctuations and the role of stabilization policies. Long-run trends, expectations, and price level movements will be examined in subsequent modules.
5 hours to complete
8 videos (Total 88 min), 2 readings, 5 quizzes
2 hours to complete
Module 2: Expectations and the Long-Run Exchange Rate
Where do expectations about the future of economic variables come from? This question is important because expectations matter a great deal in the choices made by economic agents at every point in time. This is quite easy to see in the connection between the exchange rate in the spot market at each moment and the expected exchange rate in the future spot market. In this module, we examine the formation of exchange rate expectations based on a model of long-run equilibrium in the foreign exchange market. The model turns out to be very insightful regarding the factors that drive the real exchange rates and competitiveness of economies over the years.
2 hours to complete
4 videos (Total 32 min), 2 readings, 3 quizzes
4 hours to complete
Module 3: Long-Run Economic Performance and Short-Run Adjustments
Why are some nations so much poorer than others? Why do some countries manage to grow fast over decades while others stagnate? What determines the real per capita income in a country in the long run? One goal of this module is to examine these fundamental questions in economics. The module also discusses the relationship between short-run and long-run equilibria and shows how the process of adjustment may lead to macroeconomic instability. It ends by examining the role of monetary and fiscal policies in stabilizing or destabilizing the economy as it goes through the adjustment process.
4 hours to complete
8 videos (Total 88 min), 2 readings, 4 quizzes
3 hours to complete
Module 4: Institutions and Macroeconomic Policies
Some countries seem to be much more prone to macroeconomic crises and stagnation than others. Why do policymakers in some countries fail to follow more productive and stabilizing policies? What roles do a country’s politics and institutions play in the policy choices by the government and the central bank? What factors and variables do we need to know about in order to be able to assess a country’s long-term macroeconomic prospects?
3 hours to complete
5 videos (Total 50 min), 4 readings, 4 quizzes
Reviews
TOP REVIEWS FROM COUNTRY LEVEL ECONOMICS: POLICIES, INSTITUTIONS, AND MACROECONOMIC PERFORMANCE
by ACAug 26, 2020
Fantastic course. Highly recommended if you want to dive into Macroeconomic, policies and how institutions behave under certain shocks. Not a trivial course, but very interesting.
by TPAug 4, 2020
After doing this course,I have learnt about many things like policies,institutions etc.All of this help me in real life & studies.Thank You sir for giving me that oppurtunity.
by JHJun 16, 2020
Great delivery of the information, I have a much clearer understanding of Fiscal and Monetary Policies and the advantages and disadvantages that each of them present.
by VSJul 9, 2018
Great course! Gives you a great start to understanding the rationale underlying economic events in the country and the world! Excellent complement to MicroEconomics
About the Managerial Economics and Business Analysis Specialization
In order to effectively manage and operate a business, managers and leaders need to understand the market characteristics and economic environment in which they operate. In this specialization, you will build a solid understanding of the operation of markets and the macro-economic environment with real-world examples. You will be able to identify firm and country-level economic factors that impact business decisions, develop an analytical framework using statistical tools, and apply economic theory and data in the analysis of business environment and trends to make effective business decisions.
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