Lec1 - Finance 101 Monetary Economics the Global Economy...

Info icon This preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Finance 101: Monetary Economics & the Global Economy Lecture 1 Introduction and overview Prof. Hnatkovska Fall 2011
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FNCE 101 - Hnatkovska - Lecture 1 2 Outline What is macroeconomics? Course overview and administrative stuff A first look at the data
Image of page 2
FNCE 101 - Hnatkovska - Lecture 1 3 What is macroeconomics? Typical macro questions What determines a nation’s long-run growth rate? How do recessions / booms occur? Why is the unemployment rate so high / low? What causes inflation and why is it a bad thing? How can the government influence the economy with monetary and fiscal policy? Is this a good idea? Our objectives Provide a coherent model of the aggregate economy in order to answer these questions Understand the origins of recent financial crisis and its macroeconomic impact.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Course methodology Consider economy as a combination of different markets Build analysis from ‘the bottom up’ Individual: derive demand and supply from agents’ (households, firms) optimal decision problems Aggregate: sum up demands and supplies across agents and combine to describe goods, labor and capital markets General equilibrium: combine different aggregates such that all markets clear simultaneously Advantages Changes in economic environment (e.g. taxes) change agents’ behavior => ‘bottom up’ analysis allows us to take these changes into account Markets are interrelated and must be considered jointly => General equilibrium allows us to do so 4
Image of page 4
Course program Review macro statistics and asset prices Describe key economic markets Production and labor market Consumption, investment and capital markets Money, prices and asset markets Combine everything in general equilibrium IS-LM / AS-AD framework Use model to discuss Business cycles (Classical vs. Keynesian view) Fiscal and monetary policy Long-run growth Expand model to address issues in international economics FNCE 101 - Hnatkovska - Lecture 1 5
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Lectures Attendance is not mandatory but is HIGHLY recommended Sit in same seat every lecture so that I get to know your names Ask questions often and at any time Don’t distract your classmates (and yourself) No food No cell phones Laptops & iPads only for note-taking FNCE 101 - Hnatkovska - Lecture 1 6
Image of page 6
FNCE 101 - Hnatkovska - Lecture 1 7 Website https://webcafe.wharton.upenn.edu/eRoom/fnce/ Access Wharton username and password Apply online at http://accounts.wharton.upenn.edu Content Lecture notes Assignments Supplementary readings and weblinks Practice exams Administrative info Discussion groups Sign-up tools
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FNCE 101 - Hnatkovska - Lecture 1 8 Required reading material Lecture notes (slides) Available on webCafé (the evening before class at the latest) Textbook Abel, Bernanke and Croushore (2011). Macroeconomics . Addison- Wesley, 7th edition. [ABC] Available at Penn Bookstore Note: Study Guide and access to MyEconLab not required Course pack Selected chapters from other textbooks Available on http://www.study.net
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern