ECON 515 MACROECONOMIC POLICY
FALL 2012
Monday & Wednesday
8:00AM-9:30AM
9:50PM-11:20PM
1:10PM-2:40PM
Rawls 3082

INSTRUCTOR: DR. GERALD J. LYNCH
Office: Rawls 4039
Phone 494-4388 lynch@purdue.edu Secretary: Sherry Fisher 496-7227
Office Hours: Monday and Wednesday 3:00-4:00 and by appointment

Introduction to the topic: As recent turmoil in the financial markets has demonstrated, macroeconomic fluctuations in the economy can create a difficult operating environment for the firm. This situation is further complicated by the fact that it is an environment over which the firm has little control. Even though the firm cannot control the environment, it can still react to economic conditions in ways that minimize its uncertainty as long as it understands the constraints it is facing. The purpose of this course is to help in an understanding of the macroeconomy. Macroeconomics is that branch of economics that seeks to understand and explain changes in output, general prices, employment, interest rates, foreign exchange rates, the balance of payments, and other related phenomena. Emphasis is given in this course to analyzing financial markets where interest rates are determined. We will spend more time than usual on the financial markets this year in response to the uncertainty in that environment today. Also, since the macroeconomic environment in this country is increasingly influenced by international conditions, the factors underlying trade and exchange rate movements are also discussed. The study of macroeconomics is interesting and frustrating at the same time. It is interesting because the topics we discuss relate to information you see presented in the newspapers every day. The readings and topics we review will, for the most part, already be familiar to you all. The concerns of our study are not only those of the manager but also