Macroeconomic Analysis Methodology: (Book 1 of 6)

This book seeks to demystify the macroeconomic terminology reported in the media, explain how past economic crises such as the global financial crisis occurred, and present macroeconomic analyses that have proven useful to businesses and improved shareholder prices. In order to meet these objectives a systematic approach or methodology to analysis is presented. The methodology focuses on five macroeconomic measures (gross domestic product, interest rates, inflation, exchange rates and exports). Analysis tools are provided for students and practitioners to do the heavy lifting. A widely used business technique called “what-if” analysis focuses on creating before and after views of the five macroeconomic measures. Change is examined in terms of direction and size of movement. Due diligence is done on only the biggest macroeconomic mover. The costs to do analyses are far below more traditional approaches. The time required to learn and do the analyses is measured in terms of hours and minutes rather than day, weeks and months. The connections between macroeconomic analyses and business analyses are already established.

Imagine being able to pick up an article on a current economic crisis, such as sequestration or reduced government spending, going to your office, putting a few numbers into your consolidated-U.S. simulator, and viewing the dashboard of movements in gross domestic product, interest rates, inflation, exchange rates and exports for the U.S. and the EU. You notice a large drop off in exports that could mean you will fall short of meeting your quarterly international sales targets. Instead of becoming a crisis you have an opportunity to discuss options and identify the best possible choices to make. That is what this macroeconomic analysis methodology has already been able to do – get practitioners ahead of pending crises.

The six books in this Macroeconomic Analysis Series seek to ultimately reconnect macroeconomics analysis, financial analyses, and business decision-making. The books and supplemental materials allow practitioners to create “what if” views of the economy and respond to them.

About the Author

Dr. Atwater has been teaching macroeconomics at the Graziadio School of Business and Management at Pepperdine University in Malibu, California since 1995. He has also given numerous macroeconomic seminars to corporations, faculty and practitioners including Nestlé USA, the Billion Dollar Club, the Academy of Economics and Finance, the National Association of Manufacturers, and the World Demographics Conference on Ageing. Dr. Atwater won the 2010 George Award for Outstanding Faculty Member. The business experiences he brings to the classroom include serving as chief executive for a Southern California technology company, the chief financial officer of an international, value-added software company, a principal in the human resources and compensation practice at William H. Mercer, and a director and cofounder of several start-up companies.

He has created decision-support technologies and implemented them in a number of Fortune 100 companies, including AT&T, Intel, Dell Computer, Apple Computer, BHP Minerals, IBM, Bank of America, Nestlé, and Nestlé USA.

Dr. Atwater earned his AB degree in mathematics, his MA degree in mathematical economics, and his C Phil and PhD degrees in economics from the University of California, Los Angeles.