COURSE AIMS AND OBJECTIVES:
Macroeconomics provides analytical tools and formal models to explain the behaviour of output, inflation, employment, interest rates, exchange rates and other aggregate economic quantities. This set of tools is used to understand current economic issues, forecast the behaviour of the economy, assess the impact of policy choices.
COURSE DESCRIPTION AND SYLLABUS:
1. National Income and Product Accounts (NIPA). Circular Flow of Economic Activity.
2. Measuring Prices, Unemployment and Labor Costs.
3. The Goods Market. The Demand for Goods. The Determination of Equilibrium Output.
4. Financial Markets. The Demand for Money. Money demand. Money Supply. The Determination of the Equilibrium Interest Rate.
5.Goods and Financial Markets: The IS-LM Model. The Goods Market and the IS Relation.
6. Financial Markets and the LM Relation. The IS-LM Model.
7. The Labor Market. Wage Determination. Price Determination. The Natural Rate of Unemployment.
8. The AS-AD Model. Aggregate Supply. Aggregate Demand.
9. Equilibrium Output. The Effects of Monetary and Fiscal Policy. The Effects of Changes in the Price of Oil.
10. The Natural Rate of Unemployment and the Phillips Curve. Inflation, Expected
Inflation, and Unemployment. The Phillips Curve.
11.Inflation, Activity, and Nominal Money Growth. Output, Unemployment, and Inflation
(Okun's Law; The Phillips Curve; The Aggregate Demand Relation). The Medium Run.
12. Growth. The Production Function. The Sources of Growth.
13. Saving, Capital Accumulation, and Output. Interactions between Output and Capital.
Implications of Alternative Saving Rates. Physical vs Human Capital.
14. Technological Progress and Growth. Technological Progress and the Rate of Growth.
The Determinates of Technological Progress.
15. Technological Progress, Wages and Unemployment. Productivity, Output, and Unemployment. Productivity and the Natural Rate of Unemployment. Technological Progress and Distribution Effects.
- O. Blanchard: Macroeconomics, 3rd edition
- R. J. Barro, V. Grilli: European Macroeconomics
- M. Burda, C. Wyplosz: Macroeconomics: A European Text, 3rd edition
- D. Romer: Advanced Macroeconomics, 2nd edition
- D.W. Findlay: Macroeconomics-Study Guide, 3rd edition
- N. G, Mankiw: Macroeconomics, 5th edition