Global Macroeconomic Challenges

An insightful and up-to-date LSE short course that addresses the challenges presented by current economic events and the evolution of global financial markets.

This executive course will guide you in examining the key events and current policy debates that are shaping the world economy. It is designed to provide you with the analytical tools required to understand the logic and implications of policy choices.

Programme benefits:

• Gain a grasp on the up-to-date economic theories that interpret current events
• Discover whether global imbalances are sustainable and what the implications are for the US dollar and foreign exchange markets
• Debate and understand the origin and the implication of imbalances within the Euro area
• Build your awareness of the perils of international financial integration and understand the potential risks ahead for emerging marketing economies
• Realise how the current financial crisis has affected the conduct of monetary and fiscal policies
• Achieve an understanding of the economic linkages among current macroeconomic events
• Increase the depth of your knowledge around the question of whether large deficits lead to sovereign defaults
• Understand what determines the risk of sovereign debt and the perceived likelihood of default
• Discuss and develop insight in to how monetary policy should be conducted when interest rates have reached the zero lower bound
• Gain a greater understanding of China’s role in the global economy, and the impact of Chinese policies on the rest of the world
• Take away learning’s from in-depth debate on whether China’s exchange rate policy is prone to bubble-creation, and if the country’s current experience holds similarities with the Japanese experience.

Course description

Current economic events and policy choices along with the evolution of global financial markets present new challenges for investment and strategic decisions. The objective of this course is to examine the relevant policy debates and to provide the analytical tools to understand the logic and the implications of these policy choices.

The course will offer a mix of lectures, student-led discussions involving LSE faculty and high profile external speakers.

This executive course will investigate the following key topics:

• Global Imbalances
• Rethinking Current account sustainability and the perils of international capital flows
• Issues in a Monetary Union
• The mystery of missing inflation
• Can fiscal discipline be counterproductive?
• China’s economic growth and its prospects for the future years
• China’s impact on the world economy
• The EU fiscal framework and its evolution

Course outcomes

• Gain a grasp on the up-to-date economic theories that interpret current events
• Discover whether global imbalances are sustainable and what the implications are for the US dollar and foreign exchange markets
• Debate and understand the origin and the implication of imbalances within the Euro area
• Build your awareness of the perils of international financial integration and understand the potential risks ahead for emerging marketing economies
• Realise how the recent financial crisis has affected the conduct of monetary policy
• Achieve an understanding of the economic linkages among current macroeconomic events
• Increase the depth of your knowledge around the question of whether large deficits lead to sovereign defaults
• Understand what determines the risk of sovereign debt and the perceived likelihood of default
• Discuss and develop insight in to how monetary policy should be conducted when interest rates have reached the zero lower bound
• Gain a greater understanding of China’s role in the global economy, and the impact of Chinese policies on the rest of the world
• Take away learning’s from in-depth debate on whether China’s exchange rate policy is prone to bubble-creation, and if the country’s current experience holds similarities with the Japanese experience.