Macroeconomics and the Global Economic Environment

Understanding the Macroeconomics Flexible Core Requirement

The purpose of Macroeconomics is to train students to think systematically about the current state of the economy and macroeconomic policy, and to be able to evaluate the economic environment within which business and financial decisions are made. The course emphasizes the use of economic theory and data to understand the workings of financial markets and the operation and impact of government policies. Specifically, the course studies the determinants of national income, employment, investment, interest rates, the supply of money, inflation, exchange rates, and the formulation and operation of stabilization policies.

Waiver Process

Waivers are not encouraged in macroeconomics since the past mastery of tools is considered only part of receiving a well-rounded macroeconomic education. Much of the course time is spent on analyzing current events, financial markets, and major policy issues. Even students who already have had substantial training in economics have found the classes rewarding since they focus on current economic problems. International students, in particular, have found the emphasis on American markets and institutions to be unique and unlike the material covered in their previous courses.

Waiver by Exam

The Finance Department recognizes that many students enter the MBA program with strong backgrounds in macroeconomics and/or corporate finance. Nonetheless, before permitting them to waive the core courses, we want to verify their current mastery of these subjects on a waiver exam.

Students who score sufficiently well on the Macroeconomics waiver exam will be granted waivers for both the full-semester version (FNCE 613) and, of course, the half-semester version (FNCE 615). Students who score somewhat less well, but demonstrate substantial mastery of the subject can waive FNCE 615, but not FNCE 613.

Please note that a waiver for FNCE 615 will not be sufficient to enable a student to become a Finance major.

Exam Preparation

Macroeconomics (ninth edition), by Andrew B. Abel, Ben S. Bernanke, and Dean Croushore, Addison-Wesley Publishing Co., 2017.