Learn how financial systems and expectations shape consumption, investment, and macroeconomic outcomes. Drawing on content from N. Gregory Mankiw, author of Macroeconomics, published by Macmillan Learning, this course connects the functions and risks of finance with the decisions behind major components of spending.

You will examine what the financial system does and how financial crises fit into the broader economy. You will then investigate the microeconomic foundations of consumption and investment, including the role of expectations in household and business decisions. A concluding look at macroeconomics brings together key lessons and unresolved questions, helping you distinguish established insights from areas of continuing debate. Supporting reference materials help you clarify terminology and revisit concepts. Through readings and practice problems, you will analyze financial-system risks and the determinants of spending. The course includes approximately ten hours of learning material and builds on foundational macroeconomic concepts. This course is part of the Macroeconomics in a Global Context Specialization and can also be taken independently.