My Insights on Macroeconomics Course

The five things that I have learnt in the Macroeconomics Course that were useful and I will remember it for a long time are as follows –

1.     The Great Depression (1929 to 1939)

2.     The economy of the World During World Wars – 1, 2 & afterwards.

3.     Role of Oil, Money, Exchange Rates, Interest Rates, Banks, Roosevelt, Keynes, the USA in driving the economy

4.     Financial Disasters of the World including 2007-2008 Crisis

5.     Importance of Following News about World, Business, Economy.

 Since I have to choose one thing out of the five stated above, I would choose the Role of Oil, Money, Exchange Rates, Interest Rates, Banks, Roosevelt, Keynes, the USA in driving the economy. Though I have worked for a Commercial Bank for nine years in branch banking roles there was always a knowledge gap about how actually the Global Economy works. In Banks, we do understand certain terms like the recession, slowdown, GDP, share market but it was limited to Indian perspective and I could never think about it in the Global Perspective. Though India opened to Globalisation, Liberalisation and Privatisation in 1991, we really didn’t know much about the world perspective. I remember watching Television in September 2008, when they were discussing the failure of Lehman Brothers and how it would affect the world. Indian Banks were really strong in those days and the Indian government and Reserve Bank of India were boosting itself that we were isolated from the said event. The government also took a lot of credit when India had amazing growth rates hovering more than 9% from 2005 to 2008 though no one really explained to us that whether we were integrally growing or it just flowed along with the global market.

The last time I studied economics as the subject was way back in 2002 in Standard Xth, and the knowledge was very limited as we focused more on the microeconomics and macroeconomics was just a single chapter given at the end of a book. We never really were exposed to quality macroeconomics learning. Even I read several books about the subject but still wasn’t able to connect the dots to understand the macroeconomics and see it not as a subject but as a valuable addition to my learning that would help me in future in my finance career.

I always wondered that why in the morning on CNBC, they discuss how US markets closed and crude oil prices and the opening of Asian Share markets, now I can actually related to all these events and their importance to understanding the economy of a country or the world.  A good thing about the said course is when the birth of the Euro currency was discussed at length and the history behind it. When the Euro was introduced in 01.01.1999, I was only 11 years old and never understood why Europe wants a new currency or why the entire world cannot have a single currency. Moreover, we also learnt the importance of large money market and exchange rate markets (about which common public) don’t know much about , and always wonder that why Rupee is getting depreciated, GBP getting depreciated due to BREXIT, China keeping its Yuan under Control, some countries like Hong Kong and Saudi Arabia peg their Currency with US Dollar. Now, I know the reasons and economics behind these actions.

Since I used to work for a Commercial Bank, so many people expect us to know details about the economy and what are the factors that drive it. I remember one NRI Customer asked me these questions - “Whether Modi will again become PM?”, “What is your view on the dollar?”,”What is my view on the government schemes introduced in India, whether it would push the economy or not or its just for statistical purposes?”, “How’s inflation and unemployment rate?, “What is my view on Oil Prices?”. Now, I feel more confident in answering those questions as I can easily explain these things even to a common man in simple terms.

I would surely remember Roosevelt’s contributions to the progressive movement and the Keynesian economics and the role of Government in keeping the economy under control and provide a Push or apply brakes to the economy depending on the situation of the economy. Now, I would not be surprised by the terms, deficit budget by Government and lowering of interest rates by Reserve Bank as I would know that it is for the betterment (PUSH) of the economy. The analogy of Car with respect to pushing the economy and letting the car cool to apply halt to an overheated economy. It’s very easy to remember now.

I always wondered why the USA or its Presidents are given so much importance in each and everything, and even Indian Media gives them a lot of coverage. Now, I can relate to these incidents that why Bill Clinton, George W Bush, Barack Obama and Donald Trump were covered in detail and last several US elections were covered by Indian Media in length.

I am really overwhelmed by the content and experience of learning. It was a great value addition and really raised a lot of confidence and the said learning is more towards general knowledge that everyone should know, knowledge on macroeconomics will definitely help in future career irrespective of the industry that we choose to work in. In the business world, it is very important to have a view or perspective on the world economy as it helps to connect with people, initiate discussions with people. One can feel very close and aware with the world happenings if he can connect the dots and understand the major drivers of the economy. Macroeconomics should be taught at all levels as it really helps a person to transform and more knowledgeable.

Though little unconventional approach I believe this is how complex subjects like Macroeconomics should be simplified and taught. Great Learning can really happen without a book or a power point presentation as well!