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Macroeconomics Lectures


Big Mac Index (11/2/2011)

The prices of Big Mac across countries could give an idea of the relative value of foreign currencies.

Keywords: Big Mac, foreign exchange, index, purchasing power parity, real exchange rate

Circular Flow (11/2/2011)

The circular flow diagram captures the big picture of how different sectors of an economy are connected to one another by flows of money and goods.

Keywords: circular flow, consumption, injection, investment, leakage, saving

Complements and Substitutes (1/2/2012)

Complements and substitutes illustrate the difference between changes in quantity demanded vs changes in demand.

Keywords: complements, demand, quantity demanded, substitutes

Crowding-out Effect (11/2/2011)

Government deficit financing could crowd out private investment.

Keywords: budget deficit, crowding out, investment, saving

Deficit and Debt (11/2/2011)

Chronic budget deficits could lead to a ballooning debt/GDP ratio.

Keywords: debt, deficit, GDP, inflation, interest rate, solvency

Eat Your Cake Now (11/2/2011)

Who doesn't like to eat their cake and have it at the same time?

Keywords: budget deficit, IOU, Social Security, Trust Fund

Exponential Growth (3/3/2014)

Exponential growth is unsustainable.

Keywords: exponential growth, population

Gaining from Comparative Advantage (8/9/2011)

Production through partial or complete specialization can increase total output and with trade total consumption can also be increased

Keywords: comparative advantage, opportunity cost

Money Multiplier (11/2/2011)

The creation process of money in a fractional-reserve banking system.

Keywords: fractional reserve system, money multiplier, reserve ratio

No Chicken Feet! (3/28/2013)

Chicken feet, long considered a waste product in the US, have become a profit center for the high-volume low-profit US chicken industry in the China export market. But the export trade is not exempted from political whims.

Keywords:

Quantitative Easing - How It Works (2/1/2012)

The Bank of England is injecting money directly into the economy to meet the inflation target.

Keywords: bonds, financial assets, inflation target, money supply, quantitative easing, spending

Spending Multiplier (11/2/2011)

Spending multiplier in the absence of crowding-out effect.

Keywords: income multiplier, marginal propensity to save, recession, spending multiplier, stimulus

Trade Deficits (11/2/2011)

Trade deficits serve to fill domestic private saving gap and government budget gap.

Keywords: budget gap, net export, saving gap, trade deficits

Wealth Inequality in America (3/6/2013)

Infographics on the distribution of wealth in America, highlighting both the inequality and the difference between our perception of inequality and the actual numbers. The reality is often not what we think it is.

Keywords: wealth distribution, wealth inequality

Who Has Comparative Advantage? (11/2/2011)

Comparative advantage in a two-goods, two-workers economy can be identified easily by comparing the relative slopes of their linear production functions.

Keywords: comparative advantage, PPC, PPF, production function, production possibilities curve, production possibilities frontier