Key Issues – ALN

There is a set of key issues that everyone should explore. These issues are like the baseline material from where to explore macroeconomic “research through play”…

Examples:

1) economic circuit/ main economic agents: Families, Private Companies, State, Rest of the World – the flows between them (financial, physical and informational)

2) how to measure GDP? different perspectives? production or output/value-added/resources or input

3) main economic policies: fiscal or budgetary/ monetary/ external or exchange rate

4) main objectives: growth (efficiency [productivity=output/input], effectiveness [reaching predefined goals]); stability (price [low inflation], employment [low unemployment])

5) Trade-offs between policy objectives and desired and undesired consequences – notion of externalities, public goods and market failures

6) main instruments of each of the different public policies

7) basic keynesian model: Y = C + I + G + (X – M)  [Product = private consumption + private companies investment + state consumption + exports – imports

8) consequences of high budgetary deficit and high external imbalance

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