Macroeconomics

							                              PART 1 FOUNDATIONS OF LAW
                              JANUARY 3RD – FEBRUARY 25TH

A: INTERNATIONAL TRADE (4)                                                      JAN 3RD – JAN 24TH
     Global economy √☺
     Principles of International Trade
          o Multilateral free trade
          o Absolute vs. comparative advantage
     Types of Protection
          o Tariffs & Quotas
          o Exchange Control
          o Export Subsidies
     Arguments in favor of protectionism
          o Safeguard employment
          o Correct balance of payment
          o Prevent exploitation of labor
          o Prevent dumping
          o Safeguard infant industries
     Trade and Globalization
          o Multinational Corporation
     Economic Integration
          o Free Trade
          o Customs Union
          o Economic Union
          o Trade creation and diversion
     Terms of Trade
     Balance of Payment and Examples
     Current Account
          o Trade in goods
          o Trade in services
          o Income & Current Transfers
     Capital Accounts
     Financial Accounts

B: INFLATION, BALANCE OF PAYMENT & EXCHANGE RATE (6)                                JAN 31ST – FEB 7TH
     Inflation, causes, consequences, rate, accelerated, stables, anticipated, unanticipated,
      International price competitiveness – floating exchange rate.
     Balance of payment problems
          o Current account contrasts in counties
          o Causes & Consequences of BOP
     Exchange rate
          o Causes and consequences in fluctuation
          o Measurement
          o Nominal vs. real
          o Trade weighted exchange
          o Determination in free market
          o Causes of change
          o Depreciation vs. appreciation
          o Effects of depreciation and appreciation exchange rate of economy
          o Exchange rate system
          o Floating system & Managed system
          o South East Asia currency crises
C: ECONOMIC GROWTH AND DEVELOPMENT (12)                          FEB 14TH – FEB 21ST
    Factors
    Indebtedness impact
    Benefits and costs
    Sustainable growth
    Unemployment & Difficulties in measuring
    Causes
    Indicators of comparative development
    Classification
         o Level of income
         o Level of idebtness
    Characteristics of developing counties
    Economic Structure
    Population growth – optimum
    Income distribution
    Employment
    External Trade
    Urbanization
    Technology
    Relationship between Balance of Payment and Inflation
    Relationship between internal and external value of money
    Relationship between inflation and unemployment


                  MIDTERM      EXAMINATION
                              ND
                   FEBRUARY 22 – FEBRUARY 29TH
     PART II: MACROECONOMIC POLICIES & GOVERNMENT INTERVENTION
                        MARCH 6TH – APRIL 17TH

A: POLICIES TO CORRECT IMBALANCE OF PAYMENT (7)                    MAR 6TH – MAR 11TH
    Expenditure switching policies
    Expenditure dampening policies
    Marginal propensity to import
    Deflation fiscal + money policy
    Devaluation

B: MACROECONOMIC POLICIES FOR DEVELOPMENT (13)                     MAR 13TH – MAR 18TH
    World trade policy
    Trade and development
    Globalization & developing countries: opportunity or threat
    World development report
    Development Goals
    Fiscal policy
    Monetary Policy
    Exchange Rate policy
      Supply side policy
      Policies to control inflation
      Policies to simulate employment
      Policies to simulate economic growth
      Policies to correct balance of payment disequilibrium
      Conflict between policy objectives

C: GOVERNMENT INTERVENTION IN THE PRICE SYSTEM (10)                MAR 20TH – MAR 27TH
    Externalities
        o Public goods & Merit goods
        o Problem of monopolies
        o Deadweight loss
    Maximum prices
        o Price stabilization
        o Taxes and subsidies
        o Divert provision
    Objectifies of government microeconomics policy
        o Efficiency & Equality
    Government regulation
    Policies to redistribute income and wealth
        o Monetary benefits
        o Tax system
        o Direct provision of goods and services
    Effectiveness of government policy
        o Problem of information
        o Problem of incentives
        o Problem of distribution
    Privatization
        o Reasons & Causes against
        o transition problem to a market economy
        o policy liberalization
        o removal of subsidies & trade liberalization
        o reform in financial sector
D: THEORY AND MEASUREMENT IN MACRO ECONOMY (11)                              APR 3RD – APR 10TH

   National income statistics
   GDP, NNP, NDP
   Ways to measure GDP
        o output measure
        o income measure
        o Expenditure measure
   Real GDP and money
   Comparison of economics growth over time and between countries
   Nature of economics growth
   Comparison of living standards over time and between countries
   Other indicators of living standards
   Money supply
        o Narrow and broad measure
        o Budget
        o Circular flow of income
        o Keynesians and monetarists
        o Aggregate expenditure
        o Consumption
        o Propensity
               Aggregate
               Marginal
        o Investment
        o Government spending
        o Net exports
        o Income determination
   Withdrawal and injections, leakages inflationary and deflationary gap multiplier h equilibrium
    income.
        o Two, Three, Four sector economies.
        o Auto nomous and induced investment.
        o Accelerator.
        o Shape and determinants of aggregate demand
        o Aggregate supply
        o Interaction
        o Sources of money supply
        o Credit multiplier
        o Open market operations
        o Total currency flow
        o Quantity theory of money
        o Interest rate determination – loanable funds theory
        o Liquidity preference, transactions motive
        o Liquidity trap



                FI N A L   EXAMINATION
                    APRIL 17TH – APRIL 29TH