This course weds business strategy with the principles of macroeconomics. It offers valuable a powerful toolbox together with cases and lessons across all major functions of business, management, from finance, operations management, and marketing to human resource management, organizational behavior, statistics, and, of course, business strategy.
Introduction
Loading...
来自 University of California, Irvine 的课程
Strategic Business Management - Macroeconomics
18 个评分
从本节课中
The Aggregate Supply-Aggregate Demand Model
与讲师见面
Dr. Peter NavarroProfessor
Paul Merage School of Business
[MUSIC]
Our next question deals with the proper role of government
in managing the macro economy.
Mr. Ricardo, if a recession hits what should the government do to fix it?
>> Our government simply needs to be patient.
If we prudently wait,
market forces will certainly bring the economy back to full employment.
>> Prime Minister Caines, what's wrong with waiting for the market to adjust?
After all, we are a free market economy.
>> Sir, it is simply bad advice.
Absent government intervention, the recession will only deepen as incomes and
production fall and unemployment rises.
>> I would remind my liberal opponent that a government big enough to give you
everything you want is a government big enough to take all you have.
>> And I would remind my conservative opponent that,
in the long run we are all dead.
So waiting for a recession to end is simply foolish.
>> Well, at least the voters will have a clear choice in this election.
>> Professor Navarro here, and welcome back to The Power of Macroeconomics.
In this lesson, I'm going to introduce you to one of the most important analytical
tools in macroeconomics, the aggregate supply, aggregate demand framework.
This framework is particularly useful because it may be used to analyze problems
like inflation and recession as well as possible solutions to these
macroeconomic problems through the use of discretionary, fiscal and
monetary policies implemented by a nation's government.
Now, to set the stage for the development of this aggregate supply,
aggregate demand framework, I'm first going to introduce you to
the one of the most important historical debates in macroeconomics.
This is an epic clash between classical economist and
Keynesian economist over the need or lack there of for
the government to try to manage the ups and downs of the business In cycle.
From the business and finance perspective, this classical Keynesian debate
is particularly interesting as it provides keen insight as to how effective or
ineffective the government may be in providing a stable and
prosperous economic environment within which to invest and conduct business.
[MUSIC]
The basic question underlying the classical Keynesian debate
are as relevant in today's modern debate
over macroeconomic policy as they were more than 100 years ago.
These questions include just how activist should the government be
in the face of macroeconomic problems like inflation and recession?
Is it in fact the government's role to use discretionary tools like fiscal and
monetary policy to try and solve macroeconomic problems?
And perhaps, most troubling, might a well intentioned government that
does intervene to try to control inflation or
stimulate economic growth actually do more harm to the economy than good?
[SOUND] These are big questions and good questions, so
let's start by diving into a little history to answer that.
[MUSIC]
The debate between classical economists and Keynesians goes back to the 1930s
in a global macroeconomic phenomenon known as the Great Depression.
The Great Depression of the 1930s was distinctive in two regards.
It was a global event, dragging down the major economies not just of Europe and
the United States, but of virtually all countries and
continents around the world, from Africa and Asia, to North and South America.
Even more troubling and unlike more isolated economic recessions and
panics of the past, the Great Depression dragged on for many, many years.
While the cause or causes of the Great Depression have been extensively debated,
we now know that trade among nations fell by almost a third
under the weight of an epidemic of protective tariffs and quotas.
We also know that by 1932, more than 30 million people were on unemployment
lines around the world while untold millions more literary starved to death.
In the ensuing mystery and political unrest,
the Great Depression helped spawn the rise of military dictatorships
promising to restore the economic and political order.
Fascists like Benito Mussolini of Italy and Francisco Franco of Spain.
The increasingly authoritarian Communism with Josef Stalin in the Soviet Union, and
of course, Adolf Hitler's Nazi Third Reich in Germany.
Which together with Imperial Japan and its own virulent brand of
militant nationalism would eventually start World War II.
These were dark times, indeed.
And it is against this backdrop that the great debate between classical
economists and Keynesians over how to end the Great Depression took place.
In our next module, we will see that this was primarily
a debate over how economies adjust to recessionary conditions.
Just how long any such adjustments may take place
[MUSIC]
