This course cannot be followed by students economics and business economics (U.S.E.). It cannot be combined with Macroeconomics: the European Perspective (ECB1MACR).
Macroeconomics studies the economy at the national level. In the first week a tour of main macroeconomic issues in three areas (Europe, USA, Asia) sets the stage for the discussion of the major macroeconomic concepts like aggregate demand and supply, nominal and real GDP, inflation, economic growth, unemployment, monetary policy and interest rates. To understand the complex interactions among these variables in the short, medium and long run macroeconomists use models. A model is an abstraction, a mathematical representation of reality that focuses on the aspects under investigation, while ignoring or rather postponing the study of possibly very relevant and interesting real world complications. Macroeconomics, by the fact that it studies large and complex systems, sometimes takes the art of abstraction to its extreme. Still the models capture the main mechanisms and can be confronted with parts of reality. That is the principle of macroeconomic research and on that principle this course is built.
In thie rest of the course we take the European perspective. This implies we must deal with the complexities of interconnected, open economies, exchange rate determination and the alternative adjustment mechanisms to balance of payments imbalances that are required in a monetary union. All such issues require a sound understanding of international macroeconomics.
Learning objectives
At the end of the course the student is able to:
- Think in terms of abstract models when discussing questions about the national and international economy;
- Describe and explain the interactions between the goods, money and labor market, the functioning of the economy in the short and medium run, the relations between employment, inflation and output and the options for fiscal and monetary policy;
- Describe and explain the factors of growth and the way in which they shape the long-run prospects of the economy;
- Take a well-reasoned position regarding macroeconomic problems in general and in matters relating to economic policy in particular;
Format
Lectures and tutorials.
Assessment method
- Midterm exam: 40% of final grade;
- Final exam: 60% of the final grade.
Effort requirements
Active participation in at least 80% of the tutorials and project sessions.
Language of instruction
English.
Students are expected to have knowledge of:
- Mathematics for Economists (ECB1WIS)
Courses that build on Macro-economics:
- Intermediate Macroeconomics: International Financial Relations (ECB2IMAE)
- Intermediate Macroeconomics: Output and time (ECB2VMAE)
- Growth and Development (ECB3GD)
- Economics of the Public Sector (ECB2EPS)
- Contemporary Economics in Historical Perspective (ECB2GED)
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