When it comes to finance, macroeconomists
long lived in a bubble. They analyzed aggregates such as inflation, employment,
and fiscal deficits. They focused on monetary and fiscal policy, convenient
levers to pursue their dual objectives of growth and price stability. Much that
was outside the bubble, the financial sector in particular, exhibited real-life
consequences for households and businesses, but was considered merely a
"pass-through" from policy levers to economic
objectives. Over time, macroeconomists realized that this was inaccurate.
Finance can enhance macroeconomic policy, contributing to long-run growth. But
finance can also result in excess risk taking and derail the economy,
as evidenced by recent banking crises, culminating with the global financial
crisis. Emerging from their bubble, macroeconomists are embracing connections
between macro and finance, with most diagnoses of the macroeconomy now
including financial sector concerns, and influencing policymakers. The Institute
for Capacity Development of the IMF has designed the FMAx to bring macroeconomists up to the speed on the language and principles of finance.
Through lectures and hands-on demonstrations, you will become familiar
with the pricing of fixed income and equity securities, term structure of
interest rates, portfolio allocation, and an introduction to risk management.
course will establish a foundation upon which you can enrich your knowledge of
interrelations between macroeconomics and finance. We hope you will join us for
the new offering of FMAx, starting soon on edX..