Principles of Macroeconomics

Principles of Macroeconomics

OVERVIEW:

This course provides an overview of macroeconomic issues:
-Theories and evidence on the aggregate economy, economic growth and short-run fluctuations;
-Determination of gross domestic product, investment, consumption, current account, trade balance, employment and unemployment in equilibrium;
-Analyses of interest rates, wage rates, exchange rates and prices;
-Roles, impact and implications of fiscal and monetary policies both in the short and long run.

COURSE CONTENT:

PART I: INTRODUCTION
Lecture 1. Introduction to Macroeconomics
1.1. Introduction
1.2. What is the Macroeconomics?
1.3. Macroeconomic variables
1.4. Macroeconomic objectives: analyzing cross-countries data

PART II: SHORT-RUN (IS-RM MODEL)

Lecture 2. The goods market
2.1. Introduction
2.2. The aggregate demand and equilibrium
2.3. Fiscal policy
2.4. Consumption
2.5. Investment
2.7. The IS function

Lecture 3. Financial Markets
3.1. Introduction
3.2. Traditional theoriess of financial markets: the LM function
3.3. Monetary policy rules
3.4 The RM function

Lecture 4. The IS-RM model
4.1. Introduction
4.2. The IS-RM model
4.3. The analysis of short-run fluctuations using the IS-RM model
4.4. The aggregate demand function in closed economy

Lecture 5. The IS-RM model in open economy
5.1. Introduction
5.2. Basic concepts
5.3. Balance of payments
5.4. Real exchange rate
5.5. The IS function in open economy
5.6. The RM function in open economy
5.7. The IS-RM model in open economy
5.8. The analysis of fluctuations using the IS-RM model in open economy
5.9. The aggregate demand function in open economy

PART III: LONG-RUN (AS-AD MODEL)

Lecture 6. The aggregate supply
6.1. Introduction
6.2. Wages
6.3. Prices
6.4. The Phillips curve
6.5. The aggregate supply function
6.6. The supply-side policies

Lecture 7. The AS-AD model in open economy
7.1. Introduction
7.2. The AS-AD model in open economy
7.3. The analysis of fluctuations using the AS-AD model in open economy

TEACHING GOALS:
-Student will learn the principles of macroeconomics and basic theories of the aggregate economy that will be used for the analysis of actual macroeconomic facts.
-Main economic and country-wide news will be discussed, together with the recent credit and public debt crises.

EVALUATION:

Final exam (70 % of the final mark).
A midterm writing exam: (15% of the final mark).
Exposition and discussion of macroeconomic papers and events in small groups(15%). In this activity students will have to write two papers (one before and one after) related to the economic papers under discussion. Three aspects will be graded: the two papers and the participation in the discussion.
The marks from the midterm exam and the classroom discussion marks will also be used for grading in September.
 

BILBIOGRAPHY:
-Macroeconomics: a EU Perspective (2nd ed.), O. Blanchard and A. Amighini and F. Giavazzi, Pearson (2013)
-Teoría y politica macroeconómica, O. Bajo-Rubio y C. Díaz Roldán, A. Bosch Editor (2011)