Macro Policy and Markets - A Hedge Fund

This course focuses on the intersection of macroeconomic policy and global financial markets. Among several emphases, we will examine the decisive and pivotal moments in international finance since the fall of the Berlin Wall, starting then because that moment marked such a monumental shift for the world from needing to emphasize security to being able to pursue prosperity. Financial markets are among the most powerful forces in the world, and they are repetitive. Unlike science and engineering, where we build on the work of those that came before, in finance we make the same mistakes over and over. Those armed with an understanding of the relevant past are well equipped to face the future in both the policymaking and financial market spaces.

Students will also learn that there are times when macroeconomic policy and global financial markets drive decisive change in economies and markets, and they will be well prepared to see the markers of impending change approaching that often upend the existing consensus and surprise so many. Students will gain insight into the macroeconomic policy process, in good times and bad, in both large and small countries. As we move past the halfway mark in the course, we will begin to synthesize “lessons learned” from our historical examination, and guidelines will be offered for future policymakers who might either be trying to improve their economy or get their economy out of a crisis.

In each episode, the instructor had a front row seat or was an active participant as events unfolded, and, without betraying confidences, numerous stories will be told about policymakers and market participants during those times. Observations on successful approaches by both groups will be made, with an eye towards helping students positively confront future professional challenges. Some understanding of the nature and psychology of financial markets will be developed. Tips for success, from investors that prospered over decades in both bull and bear markets, will also be passed along.