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TOPIC
16
Macroeconomic
Policy
Note:
the first time you go through each of these topics you should click on
the following items in sequence.
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hypertext selection
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to the lecture
Part
"a"
Part
"b"
Take
a quick quiz
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a problem
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an issue
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Building on the discussion of
theoretical developments affecting macroeconomic analysis in the last topic,
out purpose here is to survey some of the key issues of macroeconomic policy,
especially since the crises of the 1970s. Specifically we will explore
the experience with fiscal and monetary policies to control unemployment
and inflation and the policy conflicts encountered when governments have
tried to find ways to stabilize their economies internally while maintaining
some preferred relationship to the rest of the world economy.
Objectives:
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to understand what is meant
by the term "inflation"
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to understand what is meant
by the term "unemployment"
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to examine monetary policy and
to explore its limitations and potential as an instrument of macroeconomic
management
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to examine fiscal policy and
to explore its limitations and potential as an instrument of macroeconomic
management
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to identify conflicts between
policies aimed at achieving internal and external stability
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