08795 - Macroeconomics

Learning outcomes

This is a first course in macroeconomic theory. The goal of the course is to introduce students to the basic concepts and tools to understand the working of the national economy, the international economy, economic policy, public finance, and economic growth. At the end of the semester students will be familiar with the measuring of macroeconomic activity (national accounts) and will be able to move from measurement to theory, i.e. relationships between variables of interest.

Course contents

This is a first course in macroeconomic theory. The goal of the course is to introduce students to the basic concepts and tools to understand the working of the national economy, the international economy, economic policy, and economic growth. At the end of the semester students will be familiar with the measuring of macroeconomic activity (national accounts) and will be able to move from measurement to theory, i.e. relationships between variables of interest. For instance, students will be able to understand what determines national income (the “wealth of nations”), why governments intervene in economic activity via taxation, public spending and regulation, why we have central banks, how financial and labor markets work, why is there inflation of deflation, why is there unemployment, the consequences of international trade and capital movements, and why some countries are rich and other poor. These topics should be of interest for every good citizen, not only for economists and students.

Detailed contents: the 2007-2009 crisis, fundamental concepts in macroeconomics, national accounts, the goods markets in a closed and in an open economy, finalcial markets in a closed and in an open economy, general equilibrium in the short run (IS-LM), the labor market (WS-PS), general equilibrium in a closed economy (AD-AS), the Phillips curve,growth theory, stagnation and depression, public debt.

Readings/Bibliography

O. Blanchard, A. Amighini, F. Giavazzi,Macroeconomia. Una prospettiva europea,il Mulino, 2011

D. Findlay,Esercizi di macroeconomia, il Mulino, nuova edizione 2011

(both available in the original, English-language edition)

Teaching methods

Lectures, discussions, exercise sesssions.

Assessment methods

Written exam (midterm + final)

Teaching tools

Attendance is not compulsory de jure, but it is de facto so: to do well in this course it is not enough to study a textbook. Lectures and exercise sections are integrated and organized in a way to help students succeed in the exam. Furthermore, your textbook does not cover all of the material taught in class. Studying the textbook and someone else's notes is not enough and may result in a bad performance at the exam. Is is important to attend all classes and work during the semester. I encourage students not to let doubts and questions sit in their minds: new topics assume full familiarity with previous ones. We will proceed fast. This is why it's important to work hard during the semester and read the relevant chapter in advance every week.Math, microeconomics, and economic history are important prerequisites for this course. The analytical tools we will use are elementary but students must master them: algebra, functions, and diagrammatic analysis.

Links to further information

http://www2.dse.unibo.it/zanella/macro11/macro11.htm

Office hours

See the website of Giulio Zanella