About this Course
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Approx. 24 hours to complete

Suggested: 6 weeks of study, 2-3 hours of study time/week...

English

Subtitles: English, Spanish, Turkish, Arabic

100% online

Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Approx. 24 hours to complete

Suggested: 6 weeks of study, 2-3 hours of study time/week...

English

Subtitles: English, Spanish, Turkish, Arabic

Syllabus - What you will learn from this course

Week
1
3 hours to complete

Macroeconomy Overview

We are surrounded by news and commentary on the macroeconomy. To understand it, we need to grasp the meaning of GDP, inflation and unemployment and see what their “normal” levels are and how they relate to one another. Though these levels and relationships are far from mechanical, they provide an essential foundation to understanding what governments are doing in a macroeconomy....
11 videos (Total 87 min), 5 readings, 1 quiz
11 videos
What is GDP - The Circular Flow Diagram11m
Potential GDP as a Reference Point for the Business Cycle9m
GDP Gaps and Policymaking7m
What Does a Business Cycle Look Like?9m
What Drives the Business Cycle - Aggregate Supply and Aggregate Demand6m
Aggregate Supply and Aggregate Demand II9m
Aggregate Supply and Aggregate Demand III: Shifts in Aggregate Demand10m
Aggregate Supply and Aggregate Demand IV: Shifts in Aggregate Supply7m
GDP Growth in the Real World and Future Prospects4m
Conclusion: Module One7m
5 readings
Syllabus: Module 110m
Grading Policy10m
Course Staff10m
Contact Us10m
Copy of Course Staff10m
1 practice exercise
Macroeconomy Quiz14m
Week
2
1 hour to complete

The Fiscal Policy Tool

Welcome to Module 2! We will be going into fiscal policy, which is one of the key tools that authorities have to influence the economy and bring GDP closer to its ideal growth rate. It consists of changes in government spending and taxes. To try to gauge how much spending and taxes need to change to bring GDP to potential, we use two concepts: the multiplier, and crowding out. However, spending and tax revenues also move automatically across the business cycle, helping make the economy more stable. Thanks for being with us! Enjoy learning!...
7 videos (Total 49 min), 1 reading, 1 quiz
7 videos
Restrictive and Expansive Fiscal Policy Tools9m
The Multiplier Effect of Fiscal Policy9m
Crowding Out9m
Automatic Stabilizers8m
Fiscal Policy in the Real World9m
Conclusion: Module Two1m
1 reading
Syllabus: Module 210m
1 practice exercise
Fiscal Policy Tool Quiz14m
Week
3
1 hour to complete

Deficits, Debts, Myths and Realities

Welcome to Module 3! Now we know how fiscal policy is supposed to work in the economy, to close recessionary or inflationary gaps. In this module we will get into the nuts and bolts of deficits and debts in the real world and I am sure we will have some interesting follow-up discussions! How is it really used? What are government deficits and debts? When governments run deficits and need to borrow money, how and where do they do it? When are these deficits and debts more of a problem? This module will look at the US and other leading economies in recent years to answer these questions, clear up some common misconceptions, and point to what the most important concerns are with deficits and debts at the present time. Good luck and see you online! ...
10 videos (Total 65 min), 1 reading, 1 quiz
10 videos
Government Deficits and Surpluses10m
How Do Governments Borrow Money? (I)5m
How Do Governments Borrow Money? (II)11m
Who Owns Public Debt in Advanced Economies?6m
How Much Deficit is Too Much?8m
US Debt2m
Strengths and Weaknesses of Fiscal Policy4m
Conclusion: Module Three1m
Office Hours Modules 1 to 312m
1 reading
Syllabus: Module 310m
1 practice exercise
Deficits, Debts, Myths and Realities Quiz14m
Week
4
1 hour to complete

Monetary Policy

Welcome to Module 4! This week we're tackling a fascinating issue, which is monetary policy, and I anticipate some very interesting debates. Monetary policy is the other main tool that governments can use to influence the economy. Monetary authorities work through the money supply and can use open market operations, their own lending rates and reserve or cash ratios to influence money markets and hence the real economy. Just as with fiscal policy, once the gap in the economy is identified, expansive monetary policy should be used in a recessionary gap and restrictive monetary policy in an inflationary gap. Monetary policy is superior to fiscal policy in many ways, but its greatest weakness is that it does not work nearly as well in recessionary gaps as in inflationary gaps. Keep up the good work! ...
7 videos (Total 51 min), 1 reading, 1 quiz
7 videos
What is Money and What are Central Banks8m
Central Banks in the World7m
What are the Tools of Central Banks?16m
How Does Monetary Policy Work Across the cycle and Why Does it Sometimes Fail?10m
Strengths and Weaknesses of Monetary Policy5m
Conclusion: Module Four55s
1 reading
Syllabus: Module 410m
1 practice exercise
Monetary Policy Quiz14m
Week
5
4 hours to complete

Combining Policies and Other Policy Tools

Welcome, Courserians, to our fifth module in the Understanding Economic Policy course! We have so many tools in hand now that we can spend our last sessions putting the pieces together and tackling real-world policy questions. There is little that could be more relevant, and I hope you will enjoy it. In the real world, fiscal and monetary authorities may move in the same policy directions or they may act in opposition to one another. We will explore what happens as fiscal and monetary policies interact in the real economy. Additionally, economic decision-makers have two other policies that they can use to influence the economy, which are exchange-rate policy and structural policy. We will discuss how these work, and what special complications and advantages they present. There is also a peer-evaluated assignment for this course, and it’s included in this module. You will use the Economic Policy Simulator, a free interactive exercise, to make policy for an unknown country. Use all of the tools that we have learned together, and enjoy getting a chance to run a country! Thanks for your enthusiastic participation, and enjoy these last two modules of the course! ...
8 videos (Total 66 min), 1 reading, 2 quizzes
8 videos
How Do Different Combinations of These Policies Affect the Macroeconomy?6m
Policy Mixes and Outcomes12m
Exchange Rates11m
Structural Policy11m
Policy Mix in the Real World16m
Practicing Policymaking with the Economic Policy Simulator6m
Conclusion: Module Five1m
1 reading
Syllabus: Module 510m
1 practice exercise
Combining Policies and Other Policy Tools Quiz14m
Week
6
1 hour to complete

Policymaking in the Wake of the Financial Crisis

You are now in the last module of our Understanding Economic Policymaking course! Having reviewed the theory behind economic policymaking, we devote the last module to discovering what policymakers are actually doing in the leading developed countries of the world. We will discuss whether interest rates have been appropriate in a group of countries, and what the consequences are if they are not. We will also discuss quantitative easing, the main “unconventional” monetary policy, and anticipate some of its consequences. We will have a look at deficits and debt in some countries and use the tools to determine whether they are problematic; we will analyze the “austerity” policies applied in many European countries; and we will have a look at the combination of fiscal, monetary and structural policies being used in Japan, dubbed “Abenomics”. We´ll also consider the perils of policymakers´ aggressive pursuit of growth at a time when it is becoming more elusive. The final exam will have questions from this module and from each of the previous modules, so you can study your earlier quizzes to prepare. Good luck as you complete the course! I´ve enjoyed getting to know you a little. Warm regards....
9 videos (Total 51 min), 1 reading, 1 quiz
9 videos
Monetary Policy in the United States8m
Monetary Policy in Spain and Germany6m
Quantitative Easing3m
Fiscal Policy in the Real World: When is Debt Too High?11m
Abenomics4m
Policy and the Eternal Pursuit of Growth5m
Summary of the Course4m
Extra: The situation in Greece6m
1 reading
Syllabus: Module 610m
1 practice exercise
Final Exam20m
Week
7
3 hours to complete

CAPSTONE

...
5 videos (Total 22 min), 1 reading, 2 quizzes
5 videos
PROJECT INSTRUCTIONS2m
PROJECT FEEDBACK: SPAIN 2000-20085m
PROJECT FEEDBACK: SPAIN 2009-20168m
CAPSTONE CONCLUSIONS1m
1 reading
Instructions10m
1 practice exercise
Let´s see if you remember the theory10m
4.8
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Top Reviews

By PHDec 9th 2015

Excellent overview economics course. Dr. Allard does a fantastic job explaining basic economic concepts and principles so that a novice can better understand this one critical aspect of their world.

By KKDec 27th 2015

Great insights, I now feel like I am macro-economically literate and I will be using this information when interviewing and now possible grilling certain politicians in my town!\n\nThank you Gayle!

Instructor

Avatar

Gayle Allard

Professor
Economics

About IE Business School

IE Business School is an internationally recognized business school where the leaders of tomorrow shape their ideas and learn to become global citizens. For over 40 years, IE Business School has promoted innovation and change in organizations, equipping managers with an entrepreneurial mindset that generates employment, wealth, and social well-being. Regularly featured among the top business schools in the world, IE Business School has an urban campus in Madrid and a faculty of more than 400 professors who teach students from approximately 90 countries in its undergraduate and master programs. IE uses innovative online, face-to-face, and blended learning formats, including the IE Communities Platform where knowledge and experiences are exchanged with over 50,000 IE graduates that currently hold management positions in more than 100 countries worldwide....

About the Globalization, Economic Growth and Stability Specialization

This Specialization aims to make economic concepts accessible to every learner, and to teach them to analyze current events using the toolkit of economics. It begins by explaining the basic parameters of the macroeconomy, and how governments can/should use both fiscal and monetary policy to influence growth, inflation and employment. It then moves on to the international arena, where countries interact, and explains the basic principles of free trade, exchange rates, the balance of payments and immigration and how these interactions affect our everyday lives. Finally, learners will apply these tools and concepts to the world's leading economies and discover how they can "read" from a country's economic data important lessons about the risks and opportunities of doing business in these countries, equipping them with tools that they can use in the workplace and even in their personal investment decisions....
Globalization, Economic Growth and Stability

Frequently Asked Questions

  • Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.

  • When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

More questions? Visit the Learner Help Center.