Macroeconomics (Economic Theory)
- study of human choice in the conditions of the deep interdependency of people; and the most part of economics is about interactions of people under the regime of market capitalism.
- Understand main features of the capitalism and other economic systems
- Understand building blocks of the demand and supply model
- Know the main forms of market failures and government failures
- Understand the building blocks of the aggregate demand and aggregate supply model
- Understand causes of inflation and effects of anti-inflationary policy
- Understand the reason for short-run stabilization policy being welfare-improving
- Know main forms of stabilization policies (fiscal and monetary), and be able to describe their effects graphically
- Understand the main driving forces of the economy in the long run: Factor accumulation and technical progress
- Know main properties of the labor market functioning and causes of unemployment.
- Understand causes of exchange rate fluctuations
- Money, Banking and Monetary PolicyHe we will discuss money, banking and monetary policy. We will talk about the nature of contemporary money; we will analyze how commercial banks create money, and how the central bank can make regulations. We solve the exercises
- IS-LM model and Determination of GDP with Fixed Price LevelHere we discuss Keynesian cross model with the government then move to the IS curve and – using the previous theme – talk about LM curve. We solve the exercises to derive both IS and LM curve and illustrate effectiveness of both fiscal and monetary policy.
- AD-AS Model and Determination of GDP with Flexible Price LevelWe derive AD curve from IS-LM model and consider situations with different slopes of AS curves. Then we discuss contemporary version of this model with dynamic functions of both AD and AS curves.
- Short-Run Macro Dynamics: Business CyclesWe deal with three models – the multiplier-accelerator model, Kaldor model and the financial fragility hypothesis
- Short-Run Macro Dynamics: UnemploymentWe talk about the links between unemployment and business cycles and then discuss in details Efficiency Wage theory in general and Shapiro – Stigliz model in particular
- Long-Run Macro Dynamics: Solow Model and Endogenous Growth TheoryHere we talk a lot about the hockey stick of economic progress, then about Solow model and engodenous growth theory including AK model, R&D model and Galor – Zeira model.
- Interim assessment (1 module)0.3 * in-class test + 0.3 * activity in class + 0.4 * Final Exam
- 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
- Julio Davila, Julio Dávila, & Core Uclouvain. (2009). Issn: 1955-611Xthe Taxation of Savings in Overlapping Generations Economies with Unbacked Risky Assets. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.7C110562