15.015 Macro and International Economics focuses on the policy and economic environment of firms. This subject divided in three parts. The first part of the course is a study of the closed economy and how monetary and fiscal policy interacts with employment, GNP, inflation, and interest rates. Next, the course provides an examination of national economic strategies for development and growth and recent financial and currency crises in emerging markets. Finally, the course addresses the problems faced by transition economies and the role of institutions both as the engine of growth, and as the constraints for policy.

Principles of Macroeconomics 2e covers the scope and sequence of most introductory economics courses. The text includes many current examples, which are handled in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition has been thoroughly revised to increase clarity, update data and current event impacts, and incorporate the feedback from many reviewers and adopters. Changes made in Principles of Macroeconomics 2e are described in the preface and the transition guide to help instructors transition to the second edition. The first edition of Principles of Macroeconomics by OpenStax is available in web view here.

By the end of this section, you will be able to:

Define "foreign exchange market"
Describe different types of investments like foreign direct investments (FDI), portfolio investments, and hedging
Explain how appreciating or depreciating currency affects exchange rates
Identify who benefits from a stronger currency and benefits from a weaker currency

By the end of this section, you will be able to:

Analyze whether monetary policy decisions should be made more democratically
Calculate the velocity of money
Evaluate the central bank’s influence on inflation, unemployment, asset bubbles, and leverage cycles
Calculate the effects of monetary stimulus