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
Precedência obrigatória:
- 1101. Introdução à Macroeconomia
Subject matter
1. Economic Growth and Fluctuations 2. Macroeconomic Models 3. Economic Policy Analysis 4. Fiscal policy in practice 5. Dynamics of public debt 6. Structural policies
Bibliography
The course does not follow one single book. The books by Mankiw (Macroeconomics, Worth Publishers) and Blanchard (Macroeconomics, Prentice Hall) are important to consolidate macroeconomic models and concepts. In addition, the book ``The Portuguese economy in the context of economic financial and monetary integration´´, edited by the Economics and Research Department of Banco de Portugal provides illustrations of tools for applied economic policy analysis. Furthermore, specific papers will be signaled along the course.
Teaching method
Exposition in class with graphical analysis and other calculations derived on the board. Each class starts with a 15 minute discussion of a relevant policy topic using ?The Financial Times?. There is autonomous investigation from students through team assignments.
Evaluation method
The evaluation is composed of three blocks: i) Practical evaluation (10%) ii) team assignments (30%) e iii) final exam (60%).
The practical evaluation consists of two short quizzes to answer in class, including a multiple choice component. The team assignments comprise two reports to be delivered in specified dates: a) Estimate of quarterly GDP growth for the Portuguese economy in real time and based on high-frequency data. b) A monetary policy note. The monetary policy note should describe overall macroeconomic conditions, the conceptual framework of monetary policy and comment decisions taken in specific economic episodes. Groups should have four students (minimum of three and maximum of five). The final exam includes all topics covered in class.
The practical evaluation consists of two short quizzes to answer in class, including a multiple choice component.