WHAT WILL I LEARN?

Understanding Current Events in the Markets is a course designed to teach you about the economy and the markets. The goal is to help you to become conversant about what’s going on in the stock market and bond market as well as monetary policy and fiscal policy.

The live classes will cover current events and will leave you with lots to think about and discuss throughout the week. The supplemental video lectures will give you the background knowledge you need to better understand current events.

 WHEN DOES CLASS MEET?

Tuesday nights September 3 - Dec 3 (no class Thanksgiving week 11/26) starting at 7:00 PM CST. All class will be ~75 to 90 minutes.

 WHAT IF I HAVE TO MISS CLASS?

We know people lead busy lives! If you cannot come to a class, you will be provided a link to a recording the following day.

 WHAT TOPICS ARE COVERED IN THE VIDEO LECTURES?

Unit 1 – Introduction to the Class (1 tape; 23 minutes total)

 Unit 2 – GDP (6 tapes; 69 minutes total)

1.     Tape 1 – Introduction to GDP (12 minutes)

2.     Tape 2 – Growth Rates and Real vs. Nominal (13 minutes)

3.     Tape 3 – Two Primary Approaches to Calculating GDP (14 minutes)

4.     Tape 4 – GDP Isn’t Perfect (7 minutes)

5.     Tape 5 – The Business Cycle (16 minutes)

6.     Tape 6 – Comparing Countries (7 minutes)

 Unit 3 – Issues with Growth (5 tapes; 44 minutes total)

1.     Tape 1 – Argument 1: Basic Math (labor force growth + productivity growth) (15 minutes)

2.     Tape 2 – Argument 2: Secular Stagnation (10 minutes)

3.     Tape 3 – Argument 3: Six Headwinds to Growth (5 minutes)

4.     Tape 4 – Argument 4: Long-Term Impacts from Financial Crisis (6 minutes)

5.     Tape 5 – Low Growth Impacts Monetary Policy and Politics (8 minutes)

 Unit 4 – Equities (4 tapes; 67 minutes total)

1.     Tape 1 – Introduction to Stock Returns (18 minutes)

2.     Tape 2 – Valuation (Multiples) (17 minutes)

3.     Tape 3 – Mechanics of Trading (selling short) (14 minutes)

4.     Tape 4 – Indexes and the Efficient Market Hypothesis (18 minutes)

 Unit 5 – Bonds and Interest Rates (5 tapes; 63 minutes total)

1.     Tape 1 – The Yield Curve (13 minutes)

2.     Tape 2 – Forward Rates (13 minutes)

3.     Tape 3 – Treasury Inflation Protected Securities (TIPs) (13 minutes)

4.     Tape 4 – Building Up an Interest Rate (benchmark rate + risk premium) (10 minutes)

5.     Tape 5 – Credit Ratings Agencies (14 minutes)

 Unit 6 – Background Information Before Studying Monetary Policy (4 tapes; 62 minutes total)

1.     Tape 1 – Introduction to the Federal Reserve (14 minutes)

2.     Tape 2 – Interest Rates and How the FOMC Impacts the Business Cycle (17 minutes)

3.     Tape 3 – The Federal Funds Rate (17 minutes)

4.     Tape 4 – The Importance of Equity (Solving Too-Big-to-Fail) (14 minutes)

 Unit 7 – Monetary Policy (6 tapes; 78 minutes total)

1.     Tape 1 – Introduction to Monetary Policy (13 minutes)

2.     Tape 2 – Nontraditional Tools of Monetary Policy (25 minutes)

3.     Tape 3 – Thinking About Setting Policy (11 minutes)

4.     Tape 4 – FOMC Changed How They Will Implement Policy (10 minutes)

5.     Tape 5 – Should the Fed Try to Pop Asset Bubbles? (10 minutes)

6.     Tape 6 – How to Follow the Fed (9 minutes)

Unit 8 – The Dual Mandate (3 tapes; 29 minutes total)

1.     Tape 1 – Unemployment (Intro; Unemployment Rate and Participation Rate) (13 minutes)

2.     Tape 2 – Three Types of Unemployment (6 minutes)

3.     Tape 3 – Inflation (10 minutes)

 Unit 9 – The Dual Mandate (Applied) (2 tapes; 44 minutes total)

1.     Tape 1 – Full Employment (28 minutes)

2.     Tape 2 – Inflation (16 minutes)

 Unit 10 – Fiscal Policy (4 tapes; 52 minutes total)

1.     Tape 1 – Introduction to Fiscal Policy (12 minutes)

2.     Tape 2 – Tax Example (17 minutes)

3.     Tape 3 – Some Additional Terminology (15 minutes)

4.     Tape 4 – Some Things You Should Know About Debt (8 minutes)

 Unit 11 – Fiscal Policy: Numbers You Should Know (5 tapes; 71 minutes total)

1.     Tape 1 – Taxation (12 minutes)

2.     Tape 2 – Budgetary Spending (8 minutes)

3.     Tape 3 – Tax Expenditures (14 minutes)

4.     Tape 4 – Debt (16 minutes)

5.     Tape 5 – The Future (21 minutes)

 Unit 12 – Trade and Exchange Rates (4 tapes; 46 minutes)

1.     Tape 1 – Introduction to Trade (11 minutes)

2.     Tape 2 – Accounting for Trade (12 minutes)

3.     Tape 3 – Exchange Rates (14 minutes)

4.     Tape 4 – Why the Exchange Rate Changes (9 minutes)

 Unit 13 – Cost of Education and Student Debt (4 tapes; 50 minutes)

1.     Tape 1 – The Cost of Education (16 minutes)

2.     Tape 2 – Student Debt (12 minutes)

3.     Tape 3 – For-Profit Schools (12 minutes)

4.     Tape 4 – Final Thoughts on Student Debt (10 minutes)

 Unit 14 – Income Inequality (4 tapes; 52 minutes)

1.     Measuring Inequality (11 minutes)

2.     Inequality Across Regions, Race, Gender, Countries (18 minutes)

3.     The Reason We Care: Generational Mobility (12 minutes)

4.     Questions to Consider (11 minutes)

 WILL I HAVE HOMEWORK?

No! This class has no required homework. However, we recommend that you make time to watch the background lectures, read Sandy’s weekly Market Update, and follow current events outside of class.

 WHAT IF I HAVE QUESTIONS?

Sandy encourages you to ask questions during class and he will stay online after live classes to answer questions. You can also reach Sandy by email at sandy.leeds@mccombs.utexas.edu.