BA 561 Global Issues and Macroeconomics

Course Outline
COURSE INFORMATION
Division: Strategy & Business Economics

Term/period: Period 3

Instructor: Juliana Rogo

Email: jukozak@mail.ubc.ca
Phone: 604-822-0004
Section number: 101, 102
Class meeting times:
Section 101: Mon-Wed 8-10am. Section 102: Mon-Wed 10am - noon
Course duration: Jan 4 Feb 12, 2016

Classroom location: HA 132

Course website: www.connect.ubc.ca

COURSE DESCRIPTION
The performance of a firm is related to the macroeconomic environment in which it
operates. In this course we will use economic theory to discuss and evaluate issues
and recent developments of main global economies.
The course is designed to provide a basic understanding of the macroeconomics
concepts and analytical tools to develop a framework for analysing contemporary
macroeconomic policy challenges, macroeconomic issues such as business cycles,
money, inflation, interest rates, monetary and fiscal policy, wages, labor markets,
productivity and growth, linking the macroeconomic theory to real world applications
and dilemmas. Past and recent economic recessions, are interpreted in light of the
theory covered in the course.
LEARNING OBJECTIVES
1. Understand the elements of long, medium and short-run performance of the economy and
their impact on the product, labor and financial markets.
2. Understand the role of monetary and fiscal policy in small and large economies.
3. Interpret discussions about the economy in the intelligent business news and apply critical
reasoning to such discussions.

COURSE STRUCTURE
Multiple teaching approaches are used including lecture notes, in-class practice
problems, exercises and assigned readings All sessions are interactive.
ASSESSMENT
Course grade will be done according to the following:
Mini-quizzes
Participation
Macroeconomic Project
Final Exam
Total

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20%
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30%
45%
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BA 561 Global Issues and Macroeconomics

Course Outline

ASSESSMENT DETAILS
Preliminary Assignment
To be posted on the course website (Connect). Must be completed prior to first class, printed and
handed-in in Class 1. It will be computed in the participation portion of the course.
Mini-quizzes
During the term, there will be individual in-class mini-quizzes that will take place at the end of the
class, starting on the second class. The goal of the mini-quizzes is to keep students in pace with
the material and provide the students and instructor quick feedback on learning the material
covered in class. The assignments will improve the understanding of the concepts and help
students prepare for the final exam.
Class Participation
It is important that students bring their experience and knowledge into the class. Students are
expected and encouraged to effectively participate. Participation will be computed from in-class
participation assignments. These include in-class exercises relating real-world cases, data
analysis and debates related to the topics addresses in the course. Students are also expected to
actively engage in class discussions, raising points and building on points raised by their peers,
as well as bringing their experience and knowledge to class. Regular and punctual attendance is
important.
Macroeconomic Project
The group project will focus on recent macroeconomic performance of main global economies.
The project goal is to provide students with an in-depth analysis of real-world data and
macroeconomic variables such as GDP, inflation, debt, interest rate, investment, exchange rate,
unemployment, and expectations.
Final Exam
The exam will consist of a combination of multiple-choice, short answer and problems focusing on
the theory and applications covered in class and assigned readings. The exam is closed notes.

OUTLINE OF TOPICS

Class
1
Class
2
Class
3
Class
4
Class
5

Introduction, Current Economic

Outlook, Preliminary Assignment is
due.

04-Jan

Measuring the economy

06-Jan

The Goods Market

The Financial Market and the IS-LM
model
The Federal Reserve and the
Financial Crisis

11-Jan

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13-Jan
18-Jan

BA 561 Global Issues and Macroeconomics

Course Outline

Class
6
Class
7
Class
8
Class
9
Class
10

The
Open economy, Guest Speaker
20-Jan
The Labor Market and AS/AD

25-Jan

Liquidity Trap and Economic Crisis

Money and Inflation, Solow Growth
Model

27-Jan
01Feb
03Feb

Group Presentations

COURSE RESOURCES AND MATERIALS

Reading Materials:
Lecture Notes to be posted on Connect.
Macroeconomics, Fifth Canadian Edition (5th Edition).Suggested but not
mandatory.
The following reading materials can be found on-line:

IMF World Economic Outlook Update, July 2015

Global Spillovers from China Bumpy Landing: Expect Turbulence Not
Free Fall, Aug 2015
Global Data Watch, Sep 11, 2015
Global Economy Survives the China and Commodity Shocks - So Far,
Financial Times, Sep 2015
Is China Falling?, Project Syndicate, Sep 2015
Emerging Markets Meltdown, Project Syndicate, Sep 2015
Germany, Enemy of Europe? Project Syndicate, Jul 2015
Fed Outlook, Sep 2015
The World When the Fed Raises Rates, Sep 2015
China Stock Market Jitters, Project Syndicate, Aug 2015
Gauging the Correction, Sep 2015
Lessons from Last Week Wild Markets, Bloomberg Aug 2015
What Caused the Equity Crash? Financial Times, Sep 2015
Emerging Market Economies Vulnerabilities Take Center Stage, Sep
2015
Seven Questions About the Recent Oil Slump, IMF, Dec 2014
Oil New Normal, Project Syndicate, Aug 2015
Will Oil Cause the Next Recession? Bloomberg, Sep 2015
Latin America: Uncertain Times, IMF, Sep 2015
IMF World Economic Outlook, September 2015 Chapter 1
Ten Take Aways from The Rethinking Macro Policy: Progress or
Confusion? May 2015
Still Too Big to Fail, Project Syndicate, Jul 2015
Did Capitalism Fail? Sep 2013
Five Year of Financial Non-Reform, Sep 2013
The Lehman Legacy, Project Syndicate 2013
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BA 561 Global Issues and Macroeconomics

Course Outline

Syndicate July 2014

Booming Until It Hurts, Project

OTHER INFORMATION
While every attempt will be made to keep to this schedule, the instructor reserves the right at all
times to make changes in the material to be covered including the reading material. The MBA
Office reserves the right to change the location and time of the module. Advance notice of
changes will be provided on Connect.

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