- In the long run, economy’s output is a function of productive capacity (capital and labor inputs) as well as of economic structure (tax, education, and pension system, regulatory regime, tax structure, etc.)
- Understand building blocks of the AS/AD model, in closed and open economy versions. Macroeconomics is the study of economic growth and business cycles. It aims to explain observed aggregate time series for economic variables like GDP, consumption, investment, prices and wages, and the rate of unemployment. Another major objective of macroeconomics is to explain the determinants of economic growth and development in the long run.
- Understand the principles guiding Central Bank’s monetary policy
- Understand the propagation mechanism of the shocks hitting the economy
- Understand the effects of foreign capital and goods markets on the propagation mechanism
- Understand the reason for short-run stabilization policy being welfare- improving
- Know main forms of stabilization policies (fiscal and monetary), and be able to describe their effects graphically, in closed and open economy versions.
- Understand the main driving forces of the economy in the long run: Factor accumulation, R&D, demography. Solow model, Romer model. Know main properties of the labor market functioning.
- Understand interaction of inflation and fiscal policy in the long run.
- National Income Accounting. Stylized Facts of the Macroeconomy. Growth Rate and Interest Rate Measurement.
- Factor accumulation in the long run: Solow model
- Ideas and technologies: Romer model, quality improvement models.Phillips Curve and Monetary Policy
- Unemployment and Labor Market
- IS curve
- AD Curve
- Stabilization Policy in the AS/AD framework
- International macroeconomics and the Euro
- Exchange rates, international financial system, and currency crises; Monetary policy in Open Economies
- Great Recession and Financial Frictions
- Introduction to DSGE Models
- Interim assessment (2 module)0.1 * class participation + 0.3 * class tests + 0.6 * exam grade
- Bénassy, J.-P. (2011). Macroeconomic Theory. New York: Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=2092514
- Volker Böhm. (2017). Macroeconomic Theory. Springer. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.spr.sptbec.978.3.319.60149.6
- Farrokh K. Langdana. (2016). Macroeconomic Policy. Springer. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.spr.sptbec.978.3.319.32854.6