Duration: 3 hours per week - 13 weeks [ECTS: 6]

Course outline

A review of contemporary macroeconomic theories and their applications; analysis of static equilibrium and disequilibrium models; exploration of such models' implications for long run and cyclical behaviour and for policymaking. The course objectives are to have you understand the tools used in modern macroeconomics to address issues of growth and fluctuations and policymaking, and to develop your skill in analyzing real-world behaviour with them. This means in particular:

• identifying the different models commonly used for long run vs. short run macroeconomics
• deriving the steady-state behaviour of the long run models
• deriving the sensitivity of steady-state results to changes in parameters (comparative statics)
• deriving the time paths of adjustment to new steady states (macrodynamics), and
• reviewing the New Keynesian rationale for sticky-price modelling

Throughout, our emphasis will be partly on understanding the models, and partly on recognizing and mastering the mathematical and graphical tools being used. We will deal with the long run models first, then with the short to medium run (Keynesian) model.