Macroeconomics

I asked two questions in class today before I realized – I know nothing about macroeconomics. Using the fact that widely held expectations for future inflation can increase present demand and therefore create higher prices (which, according to microeconomics, reflect the willingness of the consumer to pay, or loosely, minimum marginal utility) I tried to argue that in cases where the flow of goods exchanged remains constant while inflation occurs, a situation in which real GDP remains constant, Δ nominal GDP is a better reflection of Δ aggregate welfare than Δ real GDP (0) because it captures the increased psychological utility implied by greater overall willingness to pay, given that the quantity of goods consumed remains constant at the new, higher price level.

Or in plain English: when prices for everything go up, people are better off.

That’s just sad, even for a thought experiment.  Ideally my answers will be better on a mid-term exam worth .90 of my grade (originally .20, but when I told the tutor I’d be back in America by the time of the .70 final, he thought it’d be easiest just to shift weight to the mid-term).  It’s less than two weeks after Easter break, which means that while sunbathing in Barcelona, I’ll be deriving the IS-LM model in the sand.

I hate to fixate on classes (not really, but I’ll say it just to be relatable), but I’m really liking them here.

One, the classes are surprisingly rigorous, given that London Met isn’t one of the UK’s premier institutions.  Before the first class, I was looking to switch out of Intro to Business Law to Law of Contract I to study material that was less “soft”, but in the first day we covered the different types of private and public law, the seven components of a contract, questions of law vs. justice vs. morality, and a brief history of common law in the UK.  It took me by surprise.  You see, where I come from, courses “for business” – most infamously “statistics” – have mid-term questions asking you to find the mean of 70, 80, and 90*.

Two, the internationalism of the students is amazing.  Given that Iowa has a pretty homogeneous student body, it feels good to be around students from Central and Eastern Europe, Africa, all parts of Asia, and yes, the UK.

*This is a work of fiction.  Any resemblance to true events, persons, or places is purely coincidental and unintended.

Here’s what I had for dessert tonight:

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