Delivered at:: International College of Economics and Finance

Course type:: Compulsory course

When:: 1 year, 1-3 module

Instructors

Gebauer, Markus

Nikitin, Maxim

Shirobokov, Aleksandr

Full Syllabus

Abstract

Macroeconomics is a required course designed for the first-year students of the ICEF Master of Science programme in financial economics. It provides an overview of modern macroeconomics at the advanced level. The course is taught in English. Macroeconomics course has several parts. Part I emphasis is on analytical tools of modern dynamic macroeconomics and on the long-run issues, such as the economic growth. Students will learn standard ‘workhorse’ models of modern macroeconomics, including the infinitely-lived representative agent framework and the overlapping-generations framework, as well as some of the standard applications to fiscal policy and social security. Students will be also familiarized with the main ideas of endogenous growth theory, ways to introduce money in dynamic optimizing macroeconomic models and some of the long-run findings from these models, including the optimum quantity of money (the Friedman rule) and given an introduction to open economy issues. Part II of the course deals with the analysis of the short-run macroeconomic phenomena. It introduces the Real Business Cycle approach and the New Keynesian approach to the problem of economic fluctuations. It also familiarizes students with models of Search and Matching in labor markets. Prerequisites: Students are expected to be familiar with microeconomics and macroeconomics at the intermediate level, calculus of several variables, basic statistics and econometrics.

Learning Objectives

To give a broad overview of substantive issues of modern macroeconomics;
To teach analytical tools and methods of macroeconomic analysis to enable students to continue their education at a Ph.D. level and to read research papers in the area;
To enable students to conduct applied analysis of macroeconomic policy while working for government agencies, think tanks, central banks or the private sector;
To give students the essential knowledge for applied courses, including financial economics

Expected Learning Outcomes

apply macro-finance modelling frameworks developed throughout the course.
apply methodology of search and matching models
apply the methodology of DSGE models
assess the challenges and issues the search theory of unemployment still faces
compare model predictions with empirical observations
critically appraise the performance of models vis-à-vis reality
define Recessions and Booms and outline patterns established about Business Cycles
evaluate approaches on how to incorporate monetary frictions
explain and use the basic accounting concepts that describe the modern open economy, stylized facts about the world economy and capital flows
explain basic statistical techniques used in Business Cycle Literature

Course Contents

Introduction to economic growth.
Lucas critique
Dynamic optimizing macroeconomic models: an introduction and applications
Endogenous growth.
Money in dynamic optimizing macroeconomic models.
Social infrastructure, predation and protection in macroeconomic models
International Accounting, Risk Sharing and Business Cycles
International Exchange Economies, Risk Sharing and Incomplete Markets
Financial Stability, Macro/Micro-prudential policy and international spillovers.
Russia as an Open Economy and Review
Business Cycle dynamics. The issues of business cycle movements definition. Statistical ways of economic dynamics decomposition into short- and long-run dynamics. Stylized facts about short-run movements.
The Real Business Cycle (RBC) models.
The New Keynesian models.
Search-Theoretic Models

Assessment Elements

final exam
midterm test 2
midterm test 1
homework assignments 1
homework assignments 2
semester 1 test
course participation

Interim Assessment

2024/2025 3rd module
0.05 * course participation + 0.3 * final exam + 0.05 * homework assignments 1 + 0.05 * homework assignments 2 + 0.125 * midterm test 1 + 0.125 * midterm test 2 + 0.3 * semester 1 test

Bibliography

Recommended Core Bibliography

Advanced macroeconomics, Romer, D., 2012

Recommended Additional Bibliography

9780262268622 - Blanchard, Olivier; Fischer, Stanley - Lectures on Macroeconomics - 1989 - MIT Press - https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=11345 - nlebk - 11345
Economic growth, Barro, R. J., 2004
Gong, G., & Semmler, W. (2006). Stochastic Dynamic Macroeconomics: Theory and Empirical Evidence. Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.oxp.obooks.9780195301625

Authors

GEBAUER MARKUS -
Nikitin Maksim Igorevich

Master’s Programme 'Financial Economics'

Macroeconomics. Advanced Level