1. Seminar You are an accountant with a large company. Your boss asks you to hide some bad debts so that they do not appear on the accounts. He tells you that if you do not do this the company may go bankrupt. Consider what you will do in terms of the ethical principles of deontology, consequentialism and virtue.

2. 06 Macroeconomics English for economics: Geoff Cockayne 2011

3. What is macroeconomics? economic study of a community; usually a country contrast with microeconomics SRAS & LRAS

4. Macroeconomic concerns national income & expenditure inflation unemployment the business cycle economic governance

5. National income & expenditure

6. GDP & GNI GDP = C + G + I + X - IM GNI = C + G + I + NIA Net income from abroad (Lipsey: 346) per capita GDP is not average salary income distribution; GINI coefficient PPP & the Big Mac Index

7. Comparisons are odious

8. Inflation change in general price levels CPI ‘basket of goods’ devalues income and savings cost push & demand pull hyperinflation

9. CPI Basket of goods (FT: 2010)

10. Unemployment not working but expected to work frictional structural underemployment – the business cycle overemployment – command economy

11. The Business Cycle GDP fluctuation !! bubbles and shocks Keynes: business confidence and animal spirits Monetarism: government and money supply

12. Economic governance governments & central banks regional organisations: the EU international organisations: The World Bank, the IMF, the WTO

13. References Lipsey,R. & Chrystal, K. (2007) Economics: Eleventh Edition. Oxford: OUP. FT (2010) ‘Money Supply’. Financial Times. 15 March 2010.

14. Homework What causes hyperinflation? What are its possible consequences? What can be done to prevent it? Describe a recent or historical example.