Macroeconomics 1

Bachelor 2023/2024

Type: Compulsory course (International Programme in Economics and Finance)

Area of studies: Economics

Delivered by: International College of Economics and Finance

Where: International College of Economics and Finance

When: 2 year, 3, 4 module

Mode of studies: offline

Open to: students of one campus

Instructors: Andrei Dementiev, Ilya Gulenkov, Nataliya Alexandrovna Sapunkova

Language: English

ECTS credits: 5

Contact hours: 84

Full Syllabus

Abstract

This one-semester course is taught in English and aims to develop model-based way of ‘aggregate thinking’ and make students ready to apply relevant macroeconomic tools in Russian and international contexts. Gross-country income differences and long-run GDP trends are discussed through the lens of the Solow growth model. The short-run effects of fiscal and redistribution policies are studied using the Keynesian Cross model. Challenges of contemporary central banks, including inflation targeting and interest rate policies, are considered within the IS-MP and AD-AS models. Finally, evaluating implications and applications of the IS-LM-BP model will help shed some light on capital movements constraints and trade restrictions faced by small open economies.

Learning Objectives

introduce students to the main factors of aggregate demand fluctuations in a mixed open economy as well as determinants of long-run aggregate supply dynamics
explain the concepts of equilibrium output, unemployment and inflation using both general language and analytical tools
develop students ability to critically evaluate and justify implications of macroeconomic policies
enable students to participate in debates on macroeconomic and political matters and present their group work results

Expected Learning Outcomes

ILO 1: define the main macroeconomic concepts and describe the models and methods used in the macroeconomic analysis of the long-run dynamics
ILO 3: apply proper analytical models to solve standard macroeconomic problems at the intermediate level
ILO 4: assess potential and limitations of the basic macroeconomic models and extend them to evaluate and justify positive macroeconomic policy propositions
ILO 5: illustrate relevance of basic macroeconomic models both in written and oral communications through applying good group working practices
ILO 2: apply the IS-MP, AD-AS, Solow and IS-LM-BP models to solve standard macroeconomic problems;
ILO 1 Define the basic macroeconomic terms and concepts that capture stylized facts of country-level short-run fluctuations and long-run dynamics
ILO 2 Formulate real world phenomena in the language of macroeconomic modelling using graphic analysis and simple algebra
ILO 3 Apply the IS-MP, AD-AS, Solow and IS-LM-BP models to derive closed form solutions of standard macroeconomic problems
ILO 4 Assess the potential and limitations of the IS-MP, AD-AS, Solow and IS-LM-BP models and extend them to evaluate macroeconomic policies in Russia and abroad
ILO 5 Illustrate the relevance of the macroeconomic models both in written and oral communications through applying good group working practices

Course Contents

National accounts and output determination
Economic growth
The IS-MP model
The AD-AS model
Inflation and Unemployment
The IS-LM-BP model

Assessment Elements

Home assignment
Individual take home open book problem set. The best ten home assignments are counted
Final exam
Students take an unseen closed-book written examination in the 4th module. ICEF examiners are free to set questions on any aspect of the syllabus. They will vary the topics and questions from year to year and may well set questions that have not appeared in past papers.
Midterm
Individual proctored unseen time-pressured closed book written test
Quiz
Weekly online test based on multiple-choice questions
Team project
A case study of real-life phenomena with final presentation and Q&A session. Individualised grades based on peer assessment of relative contributions of team-mates.
Group activity
Team-based flipped classroom with synchronous assessment and immediate feedback. The best ten individualised grades for draft submissions and productive in-class group work.

Interim Assessment

2023/2024 4th module
0.4 * Final exam + 0.1 * Group activity + 0.1 * Home assignment + 0.2 * Midterm + 0.05 * Quiz + 0.15 * Team project

Bibliography

Recommended Core Bibliography

Economics, , 2011
Economics, , 2014

Recommended Additional Bibliography

Ben S. Bernanke, & Frederic S. Mishkin. (1997). Inflation Targeting: A New Framework for Monetary Policy? Journal of Economic Perspectives, (2), 97. https://doi.org/10.1257/jep.11.2.97
Blanchard, O., Amighini, A., & Giavazzi, F. (2013). Macroeconomics: A European Perspective (Vol. 2nd ed). Harlow: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1418008
David H. Romer. (2000). Keynesian Macroeconomics without the LM Curve. Journal of Economic Perspectives, (2), 149. https://doi.org/10.1257/jep.14.2.149
Jones, A. (2005). Culture and context: critical thinking and student learning in introductory macroeconomics. Studies in Higher Education, 30(3), 339–354. https://doi.org/10.1080/03075070500095788
Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2015). International Economics: Theory and Policy, Global Edition (Vol. Tenth edition, global edition). Boston: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=nlebk&AN=1419045
Mankiw, N. G. (1990). A Quick Refresher Course in Macroeconomics. Journal of Economic Literature, (4), 1645. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.aea.jeclit.v28y1990i4p1645.60
Mankiw, N. G. (DE-588)120973626, (DE-576)164048383. (2000). Macroeconomics / N. Gregory Mankiw. New York, NY: Worth. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.07890529X

Course Syllabus