MUBSEP

This course gives students an introduction to the art and science of macroeconomic policy. Monetary policy is about setting short-term interest rates in order to keep inflation low, and stabilising the business cycle. Fiscal policy is about determining the size and composition of government expenditure and about the overall principles of how to finance these expenditures. Monetary and fiscal policy-making influences private consumption and investment decisions. A good understanding of how the two policies work may be considered a great advantage to decision-making in private enterprises and households.