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Regular version of the site

Advanced Macroeconomics

2021/2022
Academic Year
ENG
Instruction in English
6
ECTS credits
Course type:
Compulsory course
When:
1 year, 1, 2 module

Instructors


Разумовский Артем Денисович

Course Syllabus

Abstract

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. In this course we will concentrate on the study of business cycles, or economic phenomena in the short run. Study of economic growth is mostly relegated to the Macroeconomics II course. In the short run an economy experiences nominal rigidities (sticky prices and wages) and expectational errors (prices that are different from what was expected). Rigidities and expectations make nominal aggregate demand, which could fluctuate because of some shock, affect real economic activity such as output and unemployment. Therefore, it is necessary to engage in aggregate demand management in order to stabilize the economy. We will study such stabilization policies (mostly fiscal and monetary) and the most efficient ways of performing them. The global financial and economic crisis of 2008–2011 and slow recovery from it is a topic that will concern us throughout the course. We will attempt to look at it from a macroeconomist’s point of view and evaluate different economic policies enacted around the world. We will dive into the world of macroeconomic data and the economic blogosphere, which debates current events.
Learning Objectives

Learning Objectives

  • attempt to look at it from a macroeconomist’s point of view and evaluate different economic policies enacted around the world.
  • dive into the world of macroeconomic data and the economic blogosphere, which debates current events.
  • Understand the main mechanisms operating in the economy Know the basic building blocks of short-run macroeconomic theory Be able to describe the process of the economy’s adjustment towards equilibrium after a shock
  • Have an understanding of the monetary policy conducted under Taylor Rule Be able to derive consumption and investment functions in simple settings, as well as understand the concept of the optimal monetary policy Understand the need for stabilization policy, and the methods it is conducted by the government (fiscal policy) and the Central Bank (monetary policy)
Expected Learning Outcomes

Expected Learning Outcomes

  • Be able to derive consumption and investment functions in simple settings, as well as understand the concept of the optimal monetary policy
  • Be able to describe the process of the economy’s adjustment towards equilibrium after a shock
  • Have an understanding of the monetary policy conducted under Taylor Rule
  • Know the basic building blocks of short-run macroeconomic theory
  • Understand the main mechanisms operating in the economy
  • Understand the need for stabilization policy, and the methods it is conducted by the government (fiscal policy) and the Central Bank (monetary policy)
Course Contents

Course Contents

  • What is macroeconomics? Macro for short and long run.
  • Business cycles facts.
  • Short run model of the economy: building blocks.
  • Short run model of the economy and policy: closed economy.
  • Short run model of the economy and policy: open economy.
Assessment Elements

Assessment Elements

  • non-blocking class participation
    In-class activities includes different online activities, including assignments both team-based and individual, case studies, problem discussions.
  • non-blocking in-class tests
    the test time is 80 min, open book. The transfer procedure is similar to the surrender procedure.
  • non-blocking final exam
    the test time is 80 min, open book. The transfer procedure is similar to the surrender procedure.
Interim Assessment

Interim Assessment

  • 2021/2022 1st module
  • 2021/2022 2nd module
    0.6 * final exam + 0.1 * class participation + 0.3 * in-class tests
Bibliography

Bibliography

Recommended Core Bibliography

  • Homburg, S. (2017). A Study in Monetary Macroeconomics. Corby: OUP Oxford. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1546730
  • Jones, P. M., & Enders, W. (2016). The Asymmetric Effects Of Uncertainty On Macroeconomic Activity. Macroeconomic Dynamics, (05), 1219. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.cup.macdyn.v20y2016i05p1219.1246.00

Recommended Additional Bibliography

  • Richard Barwell. (2017). Macroeconomic Policy after the Crash. Springer. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.spr.sprbok.978.3.319.40463.9