API-121: Recessions, Growth, and Macroeconomic Policy

Countries around the world have faced significant macroeconomic challenges in the 21st century. The global economy entered a deep recession with the onset of the COVID-19 pandemic just a few years after recovering from a protracted economic slump caused by the 2007-2009 global financial crisis. More recently, inflation surged to levels not seen in many countries for decades. We will learn some of the key tools that macroeconomists use to understand these developments, explore the specific circumstances and institutions that mattered in each episode, and consider what policies can mitigate the harm of recessions. We will then turn to the macroeconomic challenge of promoting economic growth over the longer run. We will learn what factors drive differences in living standards over time and across countries and what policymakers can do to promote inclusive and sustainable economic growth in coming decades.