Master
2024/2025
Macroeconomics (Advanced Level-2)
Type:
Elective course (Economics and Economic Policy)
Area of studies:
Economics
Delivered by:
Department of Theoretical Economics
Where:
Faculty of Economic Sciences
When:
1 year, 2, 3 module
Mode of studies:
offline
Open to:
students of one campus
Master’s programme:
Economics and Economic policy
Language:
English
ECTS credits:
6
Contact hours:
90
Course Syllabus
Abstract
This course is a master’s level course on Macroeconomic theory. It aims to instill a firm understanding of the language of modern macroeconomics. Macroeconomics addresses “big” questions by asking: Why do economies grow over time, and what factors do determine the speed of economic growth? Why do we have business cycles, and how should monetary and fiscal policies react to short-run fluctuations? The course will seek the answers to these questions by applying modern tools to the analysis of macroeconomic processes.
The evolution of total output can be conceptually decomposed into a long-term trend and business-cycles around this trend. Macroeconomists have developed two distinct groups of theories (e.g. employing different sets of assumptions) depending on whether they are interested in explaining the short-run dynamics or the long-run dynamics in the economy. Similarly, this course is divided into two parts.
The first part of the course is devoted to the process of trend-growth in output per capita. It offers an overview of a range of standard growth models by looking at their theoretical relevance and empirical success in explaining different aspects of the process of long-run economic growth and the emergence of income differences across countries. The second part of the course is devoted to the issues in a short-run macro. It presents basic theories of business cycle fluctuations with reference to the conduct of macroeconomic policies. The primary focus is on the main tools that are used for construction of business cycle models and their application to fiscal and monetary policies.