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2012/2013  KAN-OE25  Macroeconomics - The Global Economy

English Title
Macroeconomics - The Global Economy

Course information

Language English
Exam ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Course period Spring
Time Table Please see course schedule at e-Campus
Study board
Study Board for MSc in Advanced Economics and Finance
Course coordinator
  • Mauricio Prado - Department of Economics
Main Category of the Course
  • Economics, macro economics and managerial economics
Last updated on 26-02-2013
Learning objectives
Students are required to:
  • explain the different models of economic growth and business cycles
  • explain and analyze the determinants of production, consumption, savings and investment
  • explain macroeconomic models of asset pricing
  • use the models presented in the course to explain the effects of policies and shocks on the economy
This is a mandatory course for the elite MSc in Advanced Economics and Finance. It is assumed that students have knowledge similar to the entry requirements for the MSc in Advanced Economics and Finance. For spring courses knowledge similar to the content of the 1st-semester courses is assumed as well. The courses have 60 confrontation hours (lectures and exercises), and there is a high level of interaction between lecturer and students, and in general a high work load.
Macroeconomics - The Global Economy
Final exam:
Type of test Written Exam
Marking scale 7-step scale
Second examiner External examiner
Exam period May/June
Aids Closed Book
Duration 4 Hours

No calculators allowed.

Prerequisites for attending the exam
In order to qualify for the final exam, students must hand in and get approved 3 (out of 4) problem sets.
Course content
The aim of the course is to explore the fundamentals of macroeconomics and study the determinants of production, consumption, savings and investment. The course studies international business cycles and asset pricing, and finally analyzes the impact of economic policy (e.g. monetary policy) on the global economy.

  • Neoclassical Growth Model: the Ramsey model
  • Overlapping Generations model: the Diamond model
  • Dynamic Stochastic General Equilibrium models: RBC and IBC
  • Consumption
  • Investment
  • Asset pricing
  • Monetary Policy
Teaching methods
The course is composed of 15 weekly four-hour lectures and exercise classes. These class activities will involve derivation and analysis of models and problem-solving exercises.
Expected literature
  • David Romer (2012) Advanced Macroeconomics, McGraw-Hill Irwin. Chapters 1, 2, 5, 6, 7, 8, 9, 11. ISBN 978-0-073-51137-5
  • Maurice Obstfeld and Kenneth Rogoff (1996) Foundations of International Macroeconomics, MIT Press. Chapters 1, 2, 3, 7, 8, 9, 10. ISBN 978-0-262-15047-7
  • Further recommended readings and journal articles will be posted on Learn.
Last updated on 26-02-2013