Economics II (Macroeconomics)

Economics II (Macroeconomics)
Bachelor in International Studies
ECTS Credits: 6.0
Semester: 2

COMPETENCES AND SKILLS THAT WILL BE ACQUIRED AND LEARNING RESULTS

Most decisions that businesses and policy makers take are heavily influenced by the economic environment. The growth of the economy, the distribution of income, fiscal incentives, the openness of specific markets, the regulatory intervention of the government and the financial health of the banking sector, will determinate the strategy to be taken by a business firm or a policy maker. This course will prepare students to analyze the macroeconomic environment under which policies are design. To achieve this, a complete overview of the economic system is given, a system where individual agents relate to each other (consumers and producers) and their interactions in the market give rise to economic aggregates at the macro level (production of goods and services, inflation, exchange rates, distribution of income and economic growth).

Skills
- Analyze and reason in a rigorous and systematic way about economic issues
- Clearly state economic problems assessing their scope and advancing viable solutions.
- Use economic systems to analyze policy recommendations
- Ability to communicate economic analysis in precise and concise manner

Attitudes
- Respect for economic facts as a basis for decision making both in private and public policies.
- Interest in other persons' ideas and willingness to express own opinions with grounds on empirical references.
- To improve their confidence thru a better understanding of the environment where they live.

DESCRIPTION OF CONTENTS: PROGRAMME

This course first introduces the Basic Macroeconomic Model and studies the most relevant macroeconomic indicators that measure economic performance. After this, it will discuss the two most important tools used to stabilize an economy: fiscal policy and monetary policy. Following this topic, the program concentrates on an increasingly important topic: open economies, paying special attention to the increasing debate around the conveniences of common currency areas. The course closes with an assessment of current debates regarding macroeconomic policies. The contents of the course are as follows:

1 - The Global Economy and Macroeconomics
2 - National Income Accounting, GDP and Financial Accounting
3 - Aggregate Demand, Aggregate Supply and the Short Run Equilibrium
3 - The Public Sector, Fiscal Policy, and the Public Policy debate
4 - Money an Banking
7 - Central Banks and Monetary Policy
8 - The Open Economy: Balance of Payments, Exchange Rates and Common Currency Areas
9 - Economic Growth and the role of international aid agencies

LEARNING ACTIVITIES AND METHODOLOGY

The teaching methodology is based on two types of sessions:
1. Master classes, where the subject is given with graphical support (slides). To facilitate learning the students have
access to audiovisual materials and basic texts of reference to complete and deepen the topics explained in class.
2. Practical classes to smaller groups of students, where they can take a more active part in solving the proposed
exercises and discussing current events. In these sessions, student´s participation and problem sets are graded. Student participation in class enables them to analyze problems and communicate solutions, encouraging the exchange of opinions.

ASSESSMENT SYSTEM

The continuous evaluation approach evaluates problem sets, quizzes and midterms and it accounts for 60% of the final grade, with the following weight distribution: problems sets (15%), midterms (35%). The remainder of the grade (50%) is based on a final exam (35%) and a final work (15%).

BASIC BIBLIOGRAPHY

Jacobs G. and Diaz-Jimenez J, . Macroeconomics for Almost Everybody. 2nd edition, . Editorial CopyRed. Spain
Mankiw G., . Macroeconomics, . 7th edition, . Worth Publishers

ADDITIONAL BIBLIOGRAPHY

Abel, Bernanke and Croushore, . Macroeconomics, . Pearson, . 2011