Fall 2020

Applied Macroeconomic Policy in Developing Economies: The IMF Approach

Listed in: Economics, as ECON-240


Andreas V. Georgiou (Section 01)


Students will delve into the International Monetary Fund’s (IMF) macroeconomic programming and policy framework, which is used in the regular policy dialogue of the IMF with developing countries and in the construction of IMF-supported economic adjustment programs. Students will learn how this framework is used to (i) assess macroeconomic developments and (ii) achieve macroeconomic targets over the short-term as well as the medium term so as to correct or avoid macroeconomic imbalances. The course aims to teach students how to use the framework themselves, so that they can simulate and assess the work of IMF economist teams and country authorities. The course will cover in detail the four main macroeconomic sectors and the interrelations among them and will develop the flow of funds account, highlighting both accounting and behavioral relationships. We will study the main macroeconomic policy tools available to country authorities and the quantitative effect of policies on the macroeconomic sectors. We will also discuss structural policies and their interaction with macroeconomic policies. The course will build, as appropriate, on concepts covered in the introductory course on economics. Students will use real world examples to study the issues most relevant to developing economies and will also examine critical perspectives of the framework and the IMF’s approach in general. The course aims to expose students to practical and tractable policy-relevant economic modeling by exploring a model that is widely used around the world. This course may be particularly useful both to those who may be involved in the future in policy making, policy implementation, or in advising/assisting policy makers, and to those who may become involved in policy analysis for international organizations, research bodies, the press, etc.

For Fall 2020, the class will consist of a combination of asynchronous lectures and synchronous class meetings with additional material and discussion.

Prerequisite: ECON 111. Limited to 30 students. Fall Semester. Visiting Lecturer Andreas V. Georgiou.

If Overenrolled: Seniors and majors will have priority.


Online Only, Quantitative Reasoning


2020-21: Offered in Fall 2020
Other years: Offered in Fall 2020