This course introduces both theoretical and applied issues in macroeconomics, looking at the U.S. economy on the one hand and the global economy on the other. The course emphasizes theoretical controversies relevant to contemporary policy debates. Beginning with the key principles of modern economics, we examine major questions in macroeconomic policy, including measuring the gross domestic product, the possible connection between employment and inflation, the relationship between saving and investment, the effects and limitations of government monetary and fiscal policy, and business cycles. We also consider issues in the international political economy, such as trade policy and its relation to current account deficits and the role of the International Monetary Fund and the World Bank in the international financial system.