Global Arc

In the US and many other developed countries, economic inequality has risen to historic levels in recent decades. What are the causes of this trend -- "natural" market forces (e.g., globalization?) or changes in public policy (e.g., erosion of the minimum wage)? Are measures currently proposed to counteract inequality and poverty -- e.g, progressive taxation, transfer programs to low-income families, public insurance programs such as Medicare -- effective? An emphasis is placed on understanding what basic microeconomic theory as well as empirical evidence can (and cannot) tell us about these questions.

The course focuses on fiscal and monetary policies to promote high-quality growth with price stability, but some attention will also be given to sector-specific policies and other aspects of macroeconomic adjustment and structural reform, including tax and financial sector reforms, external competitiveness, and public and external debt management. We will study various macroeconomic models, including models used by central banks for monetary policy analyses.

This course covers topics related to the current economy and current economic policy. The course will begin by reviewing the causes of the recession that began in December 2007. It will concentrate on consumer behavior, financial markets, unemployment, and the housing sector. The role of public policies in contributing to the economic crisis and in ending the crisis will be explored. The state of the recovery will be assessed and monitored. The course will also consider current economic policy priorities.

Surveys development economics including current issues, historical background, growth theories, trade and development, markets and planning, strategies for poverty alleviation, agriculture, technology, employment, industry, population, education, health, and internal and external finance. Selective attention to particular countries and regimes. Prerequisites: 101 and 300 or 310, or instructor's permission. Two lectures, one precept.

Foreign exchange markets and balance-of-payments accounts. Effects of incomes, prices, interest rates, and exchange rates on trade and capital flows. Effects of exchange rate arrangements and capital mobility on macroeconomic policies. Current policy issues: exchange rate management, macroeconomic policy coordination, managing currency crises, the roles of international institutions. Two lectures, one preceptorial. Prerequisites: ECO 100 and 101.

The course deals with the judgments required to analyze and communicate information about economic events of a firm through financial accounting. The first several classes deal with concepts of asset, liability, owners' equity, revenue, expense and the accounting processes that lead to the financial statements. Next follows an analysis of the components of financial statements: long-term liabilities, revenue recognition and income management, inventories, long-term assets, impairment and leasing chaos, off-balance sheet financing, and current controversies such as income tax inversions. Rudiments of financial analysis and valuation.

A survey of the field of investments with special emphasis on the valuation of financial assets. Issues studied include how portfolios of assets should be formed, how to measure and control risk, how to evaluate investment performance, and how to test alternative investment strategies and asset pricing models. Prerequisites: ECO 202, ECO 310 and MAT 175 or equivalent. ECO 202 or equivalent may be taken concurrently, but students would remain responsible for statistical concepts as they arise in this course. Two lectures, one precept.

Investigates the financing decisions of companies and financial institutions in the wider context of the workings of financial markets. Topics include capital budgeting, capital structure choice, risk management, liquidity, corporate governance, and the interactions between corporate finance and the workings of financial institutions and markets. Prerequisite: ECO 362. Two lectures, one precept.

This course provides an introduction to empirical methods in finance research. The goal is to allow students to gain some experience in working with financial data and learn some empirical methodologies commonly used in finance literature. The goal is not to provide a complete survey of all methodologies used in empirical finance, but rather focus on a selection of topics and study them in depth. Topics covered include asset pricing models, momentum, and derivatives.

These courses will provide an opportunity to apply the concepts and methods studied in economics core courses and electives to analyze the economic problems confronting particular countries or groups of countries. The choice of the country or region, and of the economic problem, will change from year to year. Prerequisites depend on topic. Two 90-minute lectures.