ECON *728 / Macroeconomic Theory for Public Policy

3 unit(s)

W. Scarth

This course introduces students to the research methods of modern macroeconomics, with an emphasis on developing an understanding of the major controversies in the field, and on how these tools can be used to address central policy issues (such as recessions, exchange-rate stability and debt reduction). The three modules focus on short-run stabilization problems, structural unemployment and long-run growth in living standards. Analysis based on the theory of the second best is stressed in an attempt to identify policy options that can simultaneously improve both economic efficiency and equity.