As deputy governor of the Bank of Israel, Zvi Eckstein played a leading role in the handling of the global financial crisis in 2008, working in close coordination with other institutions, such as the Federal Reserve and the European Central Bank. “Almost all of what we learned on monetary policy response since the Great Depression had to be implemented,” says Eckstein. After completing his term, he began teaching Central Banks, Macroeconomic Policy, and Financial Markets at Wharton. “Linking theory, data, and news,” he says, “became an exciting challenge that has not stopped since I started teaching this topic in 2011.”
Eckstein co-teaches the course with Joao Gomes, the Howard Butcher III Professor of Finance, professor of economics, and senior vice dean of research, centers, and academic initiatives at Wharton. “It is almost uniquely a real-time class,” Gomes says. “Every year, we talk about the challenges that are facing financial decision-makers, investors, and policymakers in the world right now.” Students are asked to step inside the minds of those shaping economic outcomes, to examine trade-offs rather than take sides, and to weigh how policy decisions ripple through global markets — equipping them to make more informed decisions in their work. Key course materials anchor those conversations in economic history and research, connecting abstract theory to the policy debates and market shifts shaping today’s economy.
“The Danger of Excessive Distraction”
At the outset of the semester, students assess how two defining events — the global financial crisis and COVID-19 — reshaped modern central banking. “What made those crises a lot less painful was the very proactive, aggressive intervention of policymakers — in particular, central banks — and the creative ways in which they deployed a large menu of tools,” Gomes says. Yet as central banks have expanded their remit, their attention has stretched beyond their core macroeconomic responsibilities. This Economist article frames that tension. “It helps us to define what central banks should and should not be focused on,” Gomes adds.
“2026 Statement on Longer-Run Goals and Monetary Policy Strategy”
Students examine how the Federal Reserve interprets its objectives of “maximum employment, stable prices, and moderate long-term interest rates” in this annual statement. “Understanding these variables and how the Fed shifts weight from one to the other over time is complex,” says Gomes. “This is where you have to put yourself in their shoes and understand what they care about most at a given time.”
Hutchins Center Fiscal Impact Measure
As the course widens from central banking to fiscal policy, this tool from the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution offers a framework for evaluating how government action influences economic growth. The Fiscal Impact Measure gauges how taxes, benefit programs, and federal, state, and local spending affect real GDP growth, translating changes in those areas into a clear measure of whether they are boosting or restraining economic activity.
“Policy Options for Reducing the Federal Debt”
This Penn Wharton Budget Model analysis teaches students how to distinguish signal from noise in fiscal debates. “Everybody and their cousin has some idea about how to reduce the deficit,” Gomes says. “Here’s a careful study of a bunch of different options.” By quantifying which proposals move the needle and which amount to rhetoric, the analysis filters out distractions, so students can focus on policies that materially affect debt.
“The Trusted 60-40 Investing Strategy Just Had Its Worst Year in Generations”
Few strategies have anchored modern investing like the 60-40 mix of stocks and bonds. In a higher-rate, higher-inflation environment, that framework has faltered, as both asset classes have moved together. This Wall Street Journal piece shows students how macroeconomic shifts can overturn long-standing assumptions about diversification and risk.
Unhedged
Throughout the semester, class discussions draw on the latest headlines, including those in the Financial Times’s Unhedged newsletter, which breaks down market moves through a macroeconomic lens. These readings, says Eckstein, reinforce “how the debates and decisions made by experts, policymakers, and others are closely related to the issues we consider in class.” By returning regularly to evolving developments, students practice the discipline at the heart of the course: interpreting policy decisions from the perspective of decision-makers as they unfold.
Published as “Market Intelligence” in the Spring/Summer 2026 issue of Wharton Magazine.
