Formally derives binary incidence of reserve requirements: with interest or excess reserves no tax, but beyond buffers costs reappear; US data demonstrate fifty‑fold safety margin since 2008 for reserve policy.

This course explores economic growth, emphasizing GDP and the role of innovative ideas, not just capital accumulation. It delves into business fluctuations, studying unemployment, inflation, and aggregate supply and demand. The course also examines macroeconomic policies and institutions, including the Federal Reserve, monetary and fiscal policies, and the interplay between economics and politics.

This undergraduate course introduces macroeconomic concepts—such as GDP and inflation—and covers the IS-LM model of business cycles, matching model of unemployment, Phillips curve, Malthusian model of growth, and Solowian model of growth.

Introduction Principles of Macroeconomics is an undergraduate-level course that provides a broad overview of the major concepts, theories, and empirical evidence of macroeconomics. The course will cover key topics such as national income determination, inflation, unemployment, interest rates, fiscal and monetary policy, gains from trade, and economic growth. This course is intended for students with little or no prior knowledge of macroeconomics and is a prerequisite for more advanced study in economics and related fields. The course will also be useful for students considering careers in government, international organizations, consulting, and the private sector. Lectures will coordinate with chapters of the text, but will also modify and supplement what is found there. Success in the course will require a thorough understanding of both the text and the lectures. The course is presented in four units below. ...