Macroeconomics (MECN-450-0)

This course counts toward the following majors: Managerial Economics, Managerial Analytics

This course develops a framework to help business leaders understand and act on some of the most pressing challenges and opportunities in the macroeconomy. Familiarity with macroeconomic concepts and current issues is essential for careers in consulting, asset management and investment, general management, global companies, among others. The course balances two missions: coverage of current and recent events, and analytical skills that prepare you for future challenges. Major recent events, such as the 2008 financial crisis, the 2010 Greek debt crisis, or the Chinese currency valuation, are covered comprehensively and with an analytic perspective. Awareness of these events and understanding how they fit together enhances not just our “macroeconomic literacy” but also provides an invaluable perspective on the forces that shape the world we live in today. Insights into current and recent events are integrated with the other major mission of the course, which is to furnish you with a consistent and enduring set of frameworks to understand, anticipate and act on the issues you are likely to face in the future.

Topics covered.

Savings, investment and fiscal policy.

Money, central banking and monetary policy.

Business cycles and government response.

Exchange rates, trade deficits and international capital movements Asset bubbles and economic and financial crises. The course syllabus (most recent version available) gives a more detailed description about specific topics, the textbook used, and additional readings..

http://kellogg.northwestern.edu/meds/courses/mecn450.html

Decision Theory (MECS-462-0)
This PhD-level course on decision theory focuses on axiomatic theories of individual decision making under risk and uncertainty. The course briefly explores utility theory under certainty and the notion of preferences and their representation, then progresses to the classic theories of decision under risk and uncertainty: von Neumann and Morgenstern, Anscombe and Aumann, and Savage. This lasts roughly half the course and constitutes a basic grounding in the subject. From there the course explores topics that expand on the classical work and are nearer to the current research frontier. These topics may include Allais Paradox, Prospect Theory and Machina's approach; Ellsberg's paradox, uncertainty aversion, and Gilboa and Schmeidler representations; dynamics - Bayesian updating, consistency, preferences over the timing of the resolution of risk/uncertainty; and notions of belief and probability in decision making.