Summer 2013 MBA Course

B5302-001: Global Econ. Env. II: Business Cycles and Financial Markets

MW - B Term, 02:45PM to 04:45PM

Location: WJW 208

Previous Terms Offered: Spring, Summer

Instructor: Michael Peters

Prerequisite(s): B6005


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Macroeconomics is in the news every day. The 2008
financial crisis lead to the most severe recession since the Great Depression,
and to massive swings in global stock markets. This in turn has triggered
historic policy responses by the U.S. Federal Reserve and Treasury, and by
governments around the world. The European Crisis has led to a fundamental
rethinking of the merits of fixed exchange rates, and the role of monetary and
fiscal stabilization policies within a currency union. These types of macroeconomic
events serve as the impetus for our analysis in the Global Economic Environment
II course.

 This course is a sequel to the core course Global
Economic Environment I. Building on the fundamentals introduced in that course,
we develop a conceptual framework to explain business cycle fluctuations and
their implications for financial markets. In particular, we examine
macroeconomic forecasting, determinants and implications of budget deficits,
the conduct and implementation of monetary policy, and the determinants of
inflation in the U.S. and other market economies around the world. Special
attention is given to the interactions between macroeconomic forces and
financial markets. Since an important goal of this course is for students to
become informed and sophisticated consumers of economic news, the issues
discussed in this course draw heavily from current events and real-world
examples.