Principles of Macroeconomics 2014 Ann Stevens

We talked about purchasing power parity, the Big Mac index, how central banks can affect the exchange rates, pegging exchange rates and the current account deficit.

We went over exchange rates, who buys and sells foreign currency, and the difference between currency appreciation and depreciation. We also talked about supply and demand in foreign exchange markets. Purchasing power parity was covered.

We finished up monetary policy and went over how a central bank can effect an economy. We also examined the equation of exchange. We then started exchange rates.

We defined money and talked about how it is measured. We then talked about central banks and their roll in the economy. We also defined bonds and talked about how central banks create money.

We finished up talking about the AD-AS model and Professor Stevens went through a number of examples and took questions. They we started talking about money, banks, the role of the Federal Reserve, and monetary policy.

We completed the discussion on the multiplier. We then introduced the Philips Curve and discussed why we might think there is a trade off between unemployment and inflation as well as whether or not we actually see such a trade off in the data.