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Macroeconomic theory is the study of an economy’s aggregate behavior. Specific topics include the effect of monetary and fiscal policy on output, employment, and price level in both the long and short run; business cycles; the role of different monetary arrangements; determination of the money stock, bank credit and interest rates; the nature of the interaction between budget and monetary expansion; the relation between inflation, unemployment, and the role of expectations; and the interaction between asset markets and the output market.
Simon School faculty who do research and sometimes teach in Macroeconomics include: Gregg A. Jarrell, John B. Long Jr, and G. William Schwert. Department of Economics faculty working in this area include Jeremy Greenwood and Alan C. Stockman.