59691 - Macroeconomics

Learning outcomes

This course provides the main principles and methods of macro-economic analysis. Students learn about macroeconomic equilibrium in protected and open economic systems and how monetary and fiscal policies may contribute to stabilising economic fluctuations. The core learning objectives are the main determinants of unemployment, inflation and international economic relationships, analysed with reference to the real economic world.

Course contents

Introduction

Data and models

GDP

Classic theory: the economy in the long run

The long run

Income production, distribution and expenditure

Equilibrium in the goods market and in the financial market

The monetary system

Inflation

Unemployment

Macroeconomics in the short run and economic policy

Business cycle theory: the economy in the short run

Introduction to short run fluctuations: AD-SRAS-LRAS model

Economic policy, shocks, IS-LM and AD

Some case studies: Great depression, Great recession, and Covid-19 crisis

Aggregate supply and Phillips curve

Open economy

Open economy: trade balance and net capital outflows

Open economy: real and nominal exchange rate

Mundell-Fleming model

The debate on macroeconomic policy

Debt and deficit

Readings/Bibliography

Gregory Mankiw and Mark Taylor, Macroeconomics, 2° Edition, European Edition, Macmillan, 2014

Lecture notes at the Virtuale online platform

Teaching methods

Frontal lectures, exercises, group works, presentations in class

Assessment methods

Two mid-term exams or one total final exam. All exams are written.

Possible extrapoints can be obtainted through essays and group presentations.

The maximum possible score is 30 cum laude. The grade is graduated as follows:

<18 failed

18-23 sufficient

24-27 good

28-30 very good

30 cum laude excellent

Teaching tools

Slides and other materials distributed in Virtuale.

Office hours

See the website of Giovanni Prarolo