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

Prerequisite

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.

Examination

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. Topics 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.