Economics

This course analyzes the economic performance of the U.S. and other national economies. How the government and its policies shape the rules of the game for business activity and influence the economic performance of businesses and nations are stressed. Specific topics include measuring national economic performance, the determinants of productivity and output growth, consumption and investment, labor markets and unemployment, inflation and monetary policy, taxes and government spending, and economic fluctuations.

This course examines the role of money and credit in the economy, with an eye toward understanding government regulation of financial markets and Central Bank operations. The economics of the financial system with a special emphasis on the theories and history of payment and credit instruments, and the management of risk by financial intermediaries is considered. Building on the foundations of money and credit, we will investigates the macroeconomic consequences of government involvement in financial markets, and the policies of the Federal Reserve in particular-from promoting financial stability to the management of the business cycle.

This course will help students develop an understanding of issues in international macroeconomics that are important for managers operating in the global marketplace. It will cover theories of the determination of exchange rates and interest rates, the management of foreign exchange risk, international capital flows, debt and currency crises, international monetary and exchange rate regimes, the roles of the international financial institutions in developing countries, and other characteristics of international financial markets.

The interface between public policy and business is broad. Effective business leadership often requires the ability to analyze and/or direct public policy. Economic analysis provides a powerful tool for analyzing public policy from both a positive (i.e. predictive) and normative (i.e. evaluative) perspective. Economic theory provides a framework for: (1) understanding and predicting the incentives of businesses, consumers and government officials, (2) formulating reasonable policy objectives and methods for achieving these objectives, and (3) quantifying the likely effects of policy choices. The basic premise of the course is that a sound understanding of a relatively small number of fundamental economic principles and methods can be of tremendous value in making sound judgments on policy issues. The first three weeks of the course will cover the fundamental principles that guide the analysis. The next five weeks will use these concepts to analyze major public policy issues that are important to business such as: (a) the public and private sector responses to environmental problems, (b) the provision of health care, (c) antitrust enforcement, (d) intellectual property rights, (e) energy supply, (f) discrimination and anti-discrimination regulations, and (g) deregulation of industries.

This course will provide students with an understanding of the basics of microeconomic theory and their application to business decisions. Topics include: the theory of consumer choice and demand; production and the behavior of firms; market power and market structure; the efficiency of competitive markets; factor markets; externalities; the economics of information and behavior under uncertainty.

This course will explore ways in which the law constrains business decisions and strategy. Topics include antitrust law, price regulation, public policies toward mergers and acquisitions, environmental regulation, and laws prohibiting discrimination in the workplace. The course will emphasize the "dos and don'ts" of strategic decision making, using real-world cases as a foundation.