Introduction to Macroeconomics

2022/2023

Academic Year

ENG

Instruction in English

5

ECTS credits

Delivered at:

Department of Economics

Course type:

Elective course

When:

1 year, 3, 4 module

Instructors

Anisovetc, Tatiana A.

Kuga, Iakov T.

Molchanov, Pavel S.

Tomskiy, Savva

Course Syllabus

Abstract

This course is an introductory macroeconomics course designed for students majoring in Economics and Management.

Learning Objectives

• Know and systematize basic macroeconomic concepts, trends, and problems
• Understand and explain possible macroeconomic consequences of different decisions, made by economic agents in the closed and open economy environment
• Be able to describe the real-world macroeconomic phenomena using simple theoretical models and to interpret the results
• Be able to characterize the relations and causal links between different macroeconomic variables
• Obtain the skills to search for relevant macroeconomic information
• Apply the acquired knowledge to the analysis of domestic and foreign macroeconomic statistics

Expected Learning Outcomes

• Get motivated and ready to start
• Acquaintance with major macroeconomic variables, their sources and links between them, standard techniques of preparing the data for the analysis
• Know microeconomic and macroeconomic factors that determine potential output
• Understand causal links between the factors and potential output
• Able to estimate them quantitatively using macroeconomic statistics
• Know microeconomic and macroeconomic factors that determine capital market equilibrium
• Understand causal links between the factors and real interest rate, saving, investment, and stock of capital
• Know major theories of the choice between savings and consumption and investment
• Enhance their results from the previous section by adding into analysis real exchange rate and international capital movements
• Acquaintance with balance of payments data and datasources
• Acquaintance with trends of economic growth and its impact on structure of economics and welfare
• Know major factors of economic growth and models of economic growth
• Able to analyse policy and structural factors impact on economic growth using models of economic growth
• Acquaintance with monetary statistics and datasources
• Acquaintance with monetary system, process of money creation, role of the central bank
• Understanding nature and consequences of high inflations
• Acquaintance with business cycle stylised facts
• Know major explanations of business fluctuations
• Able to use models to predict consequences of shocks and macroeconomic policy on economic activity and prices
• Acquaintance with instruments of monetary and fiscal policy, sources of information on monetary and fiscal policy
• Understand scope of macroeconomic policies and their potential impact on macroeconomic equilibrium in the short and long run

Course Contents

• Introduction
• Macroeconomic data
• Determinants of potential output
• Consumption, Saving, and Investment
• Saving and Investment in the open economy. Real exchange rates
• Economic growth
• Money
• Business cycles
• Macroeconomic policy

Assessment Elements

• Pre-homework
  Small home works both pre- and post-class
• Quiz
  Quizzes in class
• Homework
• Midterm
• Final Exam

Interim Assessment

• 2022/2023 4th module
  Primary grade: G0=0.25Class+0.25Midterm+0.5Final Cut-off: G*=2.5. Final grade: (1, G0 < G* G={ max(7+1.2N^(-1) (r/(n+1)); G0 ), G0 ≥ G*' ), where N^(-1) is the inverse cumulative normal distribution function, r is the rank of the student among students that meet the criterion G0 ≥ G*, n is the number of students that meet criterion G0 ≥ G*. Rank of a student with the lowest primary grade that meets the criterion G0 ≥ G* is r=1, while the rank of a student with the highest primary grade is r=n. Rounding of G is to the closest integer number. Intermediate grades are not subject to rounding. The formula 7+kN^(-1) (r/(n+1)) allows the following distribution of grades among those who satisfied the criterion G0 ≥ G*: Grade Share 4 1,9% 5 8,7% 6 23,2% 7 32,4% 8 23,2% 9 8,7% 10 1,9%

Bibliography

Recommended Core Bibliography

• Macroeconomics, Mankiw, N.G., 2007
• Макроэкономика : учебник : [в 2 ч.], Матвеева, Т.Ю., 2017

Recommended Additional Bibliography

• Macroeconomics, Abel, A.B., Bernanke, B. S., 1998
• The mystery of economic growth, Helpman, E., 2004

Authors

• KUGA YAKOV TOYVOVICH