Macroeconomics is in the news every day. Anyone who has paid attention to the news knows that the recent fall in the US housing market has caused dramatic perturbations to financial markets all around the world. This in turn has triggered very strong responses by governments in the US (in particular the Federal Reserve and the Treasury), as well as in other countries. This meltdown in financial markets and the interventions from policy makers raise a number of key questions about the health and the future of the economy in the US and abroad, which we will address 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.
For students who want to take the course "Financial Markets And The Economy" (B8351), it is strongly recommended that they take GEE II either prior to or concurrently with that course. In future terms, GEE II will be a required prerequisite or corequisite for B8351.
Benjamin Rosen Professor of Finance and Economics; Chair of Finance and Economics Division
Stephen P. Zeldes is the Benjamin M. Rosen Professor of Economics and Finance at Columbia University’s Graduate School of Business. He served as chair of the school’s Finance and Economics division from 2014-17.
In his research, Professor Zeldes has examined a wide range of applied issues in both macroeconomics and household finance, including saving behavior...