Macroeconomics | 1 Big School (By Blue Brain)

Course Content

Basic economics concepts

Introduction to macroeconomics
Introduction to economics
Scarcity
Normative and positive statements
Economic models
Command and market economies
Opportunity cost and the Production Possibilities Curve
Production possibilities curve
Opportunity cost
Increasing opportunity cost
PPCs for increasing, decreasing and constant opportunity cost
Production Possibilities Curve as a model of a country’s economy
Comparative advantage and the gains from trade
Comparative advantage, specialization, and gains from trade
Comparative advantage and absolute advantage
Opportunity cost and comparative advantage using an output table
Terms of trade and the gains from trade
Input approach to determining comparative advantage
When there aren’t gains from trade
Comparative advantage worked example
Demand
Law of demand
Price of related products and demand
Change in expected future prices and demand
Changes in income, population, or preferences
Normal and inferior goods
Change in demand versus change in quantity demanded
Supply
Law of supply
Factors affecting supply
Change in supply versus change in quantity supplied
Markets
Market equilibrium
Changes in market equilibrium
Changes in equilibrium price and quantity when supply and demand change

Economic indicators and the business cycle

Gross Domestic Product
Circular flow of income and expenditures
Parsing gross domestic product
More on final and intermediate GDP contributions
Investment and consumption
Income and expenditure views of GDP
Value added approach to calculating GDP
Components of GDP
Expenditure approach to calculating GDP examples
Examples of accounting for GDP
Limitations of GDP
Limitations of GDP
Unemployment
Unemployment rate primer
Natural, cyclical, structural, and frictional unemployment rates
Inflation
Introduction to inflation
Actual CPI-U basket of goods
Inflation data
Deflation
Example question calculating CPI and inflation
Stagflation
Deflationary spiral
Costs of Inflation
Winners and losers from inflation and deflation
Real vs. nominal GDP
Real GDP and nominal GDP
GDP deflator
Example calculating real GDP with a deflator
Business cycles
The business cycle
Aggregate demand
Aggregate demand
Shifts in aggregate demand

National income and price determination

Multipliers
MPC and multiplier
Mathy version of MPC and multiplier (optional)
Tax multiplier, MPC, and MPS
Short-run aggregate supply
Short run aggregate supply
Long-run aggregate supply
Long-run aggregate supply
Equilibrium in the AD-AS Model
Short run and long run equilibrium and the business cycle
Changes in the AD-AS model in the short run
Shifts in aggregate demand
Demand-pull inflation under Johnson
Real GDP driving price
Cost-push inflation
Long run self-adjustment
Long run self adjustment
Fiscal policy
Fiscal policy to address output gaps
Calculating change in spending or taxes to close output gaps
Tax lever of fiscal policy
Automatic stabilizers
Automatic stabilizers
Financial assets
Introduction to interest
Introduction to bonds
Relationship between bond prices and interest rates
What it means to buy a company’s stock
Bonds vs. stocks
Nominal v. real interest rates
Real and nominal return
Calculating real return in last year dollars
Nominal interest, real interest, and inflation calculations
Relation between nominal and real returns and inflation

Financial sector

Definition, measurement, and functions of money
Money supply: M0, M1, and M2
Functions of money
Standard of deferred payment and legal tender
Commodity money vs. Fiat money
When the functions of money break down: Hyperinflation
Hyperinflation
Banking and the expansion of the money supply
Overview of fractional reserve banking
Money creation in a fractional reserve system
Weaknesses of fractional reserve lending
Full reserve banking
Simple fractional reserve accounting (part 1)
Simple fractional reserve accounting (part 2)
The money market
Demand curve for money in the money market
Equilibrium nominal interest rates in the money market
Money supply and demand impacting interest rates
Monetary policy
Monetary policy tools
Monetary and fiscal policy
The market for loanable funds
Loanable funds market
National savings and investment
Interest rates and the time value of money
Introduction to present value
Present value 2
Fiscal and Monetary Policy Actions in the Short Run
Fiscal and monetary policy in parallel
The Phillips curve
Phillips curve
Changes in the AD-AS model and the Phillips curve
Money growth and inflation
Quantity theory of money(Opens a modal)
Velocity of money rather than quantity driving prices
Deflation despite increases in money supply
Moderate inflation in a good economy

Long-run consequences of stabilization policies

Crowding out
Crowding out
Deficits and debts
Deficits and debts
Economic growth
Understanding economic growth
The balance of payments
Balance of payments: Current account
Balance of payments: Capital account
Data on Chinese US balance of payments
Why current and capital accounts net out
Exchange rates
Exchange rate primer
The foreign exchange market
Currency exchange introduction
Supply and demand curves in foreign exchange
Accumulating foreign currency reserves
Using reserves to stabilize currency
Speculative attack on a currency
Financial crisis in Thailand caused by speculative attack
Math mechanics of Thai banking crisis
Effect of changes in policies and economic conditions on the foreign exchange market
Causes of shifts in currency supply and demand curves

Open economy: international trade and finance

Real interest rates and international capital flows
Introduction to currency exchange and trade
The consumption function
Consumption function basics
Generalized linear consumption function
Consumption function with income dependent taxes
The Keynesian cross
Keynesian cross
Details on shifting aggregate planned expenditures
Keynesian cross and the multiplier
IS-LM
Investment and real interest rates
Connecting the keynesian cross to the IS curve
Loanable funds interpretation of IS curve
LM part of the IS-LM model
Government spending and the IS-LM model
Keynesian economics and its critiques
Keynesian economics
Risks of Keynesian thinking
Analysis of income inequality in the United States (in partnership with the New York Times)
Introduction to series analyzing income and wealth trends in the US
Looking at trends in inflation adjusted income since 1980
Comparing income trends across countries
Per capita GDP trends over past 70 years
US taxation trends in the post war era

Keynesian approaches and IS-LM

National income and inequality
Capital by Thomas Piketty
Difference between wealth and income
What is capital?
Piketty’s two drivers of divergence
Is rising inequality necessarily bad?
Convergence on macro scale
Education as a force of convergence
Gilded Age versus Silicon Valley
Inverse relationship between capital price and returns
Connecting income to capital growth and potential inequality
r greater than g but less inequality
Return on capital and economic growth
Critically looking at data on ROC and economic growth over millenia
Simple model to understand r and g relationship
The 2008 Financial Crisis
CNN: Understanding the crisis
Bailout 1: Liquidity vs. solvency
Bailout 2: Book value
Bailout 3: Book value vs. market value
Bailout 4: Mark-to-model vs. mark-to-market
Bailout 5: Paying off the debt
Bailout 6: Getting an equity infusion
Bailout 7: Bank goes into bankruptcy
Bailout 8: Systemic risk
Bailout 9: Paulson’s plan
Bailout 10: Moral hazard
Bailout 11: Why these CDOs could be worth nothing
Bailout 12: Lone Star transaction
Bailout 13: Does the bailout have a chance of working?
Bailout 14: Possible solution
Bailout 15: More on the solution

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Course Content

Basic economics concepts

Introduction to macroeconomics

Introduction to economics

Scarcity

Normative and positive statements

Economic models

Command and market economies

Opportunity cost and the Production Possibilities Curve

Production possibilities curve

Opportunity cost

Increasing opportunity cost

PPCs for increasing, decreasing and constant opportunity cost

Production Possibilities Curve as a model of a country’s economy

Comparative advantage and the gains from trade

Comparative advantage, specialization, and gains from trade

Comparative advantage and absolute advantage

Opportunity cost and comparative advantage using an output table

Terms of trade and the gains from trade

Input approach to determining comparative advantage

When there aren’t gains from trade

Comparative advantage worked example

Demand

Law of demand

Price of related products and demand

Change in expected future prices and demand

Changes in income, population, or preferences

Normal and inferior goods

Change in demand versus change in quantity demanded

Supply

Law of supply

Factors affecting supply

Change in supply versus change in quantity supplied

Markets

Market equilibrium

Changes in market equilibrium

Changes in equilibrium price and quantity when supply and demand change

Economic indicators and the business cycle

Gross Domestic Product

Circular flow of income and expenditures

Parsing gross domestic product

More on final and intermediate GDP contributions

Investment and consumption

Income and expenditure views of GDP

Value added approach to calculating GDP

Components of GDP

Expenditure approach to calculating GDP examples

Examples of accounting for GDP

Limitations of GDP

Limitations of GDP

Unemployment

Unemployment rate primer

Natural, cyclical, structural, and frictional unemployment rates

Inflation

Introduction to inflation

Actual CPI-U basket of goods

Inflation data

Deflation

Example question calculating CPI and inflation

Stagflation

Deflationary spiral

Costs of Inflation

Winners and losers from inflation and deflation

Real vs. nominal GDP

Real GDP and nominal GDP

GDP deflator

Example calculating real GDP with a deflator

Business cycles

The business cycle

Aggregate demand

Aggregate demand

Shifts in aggregate demand

National income and price determination

Multipliers

MPC and multiplier

Mathy version of MPC and multiplier (optional)

Tax multiplier, MPC, and MPS

Short-run aggregate supply

Short run aggregate supply

Long-run aggregate supply