Macroeconomic Policies
Code
1107
Academic unit
null
Department
null
Credits
7,5
Teacher in charge
João Amador
Teaching language
English
Objectives
The objective of the course is to consolidate and enlarge macroeconomic concepts and models acquired by students in previous macro courses and illustrate their use for applied economic policy analysis and decision making. At the end of the course students should have a coherent conceptual framework to analyze current macroeconomic developments and discuss policy issues. In addition, the course makes reference to some theoretical extensions, signaling more advanced macro topics.
The course has three main building blocks. Firstly, the determinants of long term economic growth and fluctuations are examined. Secondly, the macroeconomic models are revised and enlarged to include dynamic components and highlight the role of expectations and external linkages. Thirdly, the course discusses applied economic policy issues and current developments.
Prerequisites
Compulsory pre-requisites:
- 1103. Macroeconomics
Subject matter
-Economic Growth and Fluctuations
-Production function and the sources of growth
-Solow growth model
-Growth accounting and potential output
-Economic fluctuations and their causes
-High-frequency economic data and national accounts estimates
-Macroeconomic Models
-The IS-LM model (brief consolidation)
-The Mundell-Fleming model and co-ordination of policies
-Static aggregate demand and supply
-Labor market and expectations
-Dynamic aggregate demand and supply
-Economic Policy Analysis
-Monetary policy in practice
-Money market interventions
-Monetary policy transmission mechanism
-Fiscal policy in practice
-Budgetary process
-Cyclically adjusted primary general government balances
-Public debt dynamics
-Stability and growth pact
-Structural policies
-Product market regulation
-Labor market regulation
-Other structural policies
Bibliography
Teaching method
Evaluation method
The evaluation is composed of three blocks:
i) practical evaluation (10%)
ii) team assignments (30%)
iii) final exam (60%)
The practical evaluation consists of two short quizzes to answer in class, including a multiple choice component.