The objective of this course is to offer an introduction to macroeconomic theory at the intermediate level. To this aim students are required to acquire certain knowledge, capacities and attitudes.
As far as knowledge is concerned, by the end of the course, students should be able to:
- Understand the relationship between the marginal productivity of inputs (such as labor and capital) and their market prices.
- Understand the concept of neutrality of money and its relationship with price flexibility.
- Evaluate the impact of fiscal and monetary policy both in closed and in open economies.
- Analyze the impact of demand and supply shocks both in closed and in open economies.
- Understand the importance of technological and demographic changes, as well as the accumulation of physical capital, for economic growth.
The capacities students are supposed to acquired can be classified in two groups: specific and general. Regarding the former, students should be able to:
- Explain the relationship between national savings, investment and the current account balance.
- Determine the equilibrium in the IS-LM and Mundell-Fleming models.
- Analyze the effect of both monetary and fiscal policies in the short and in the long run.
- Determine the steady state in the Solow growth model.
Regarding the general capacities, throughout the course students will learn how to:
- Interpret macroeconomic data.
- Formulate economic policies designed to smooth business cycles and foster growth.
- Understand the main current debates among macroeconomists.
- Become more familiar with the formalization of economic problems.
Finally, the attitudes the students should show include:
- A critical assessment of the economic theories studies throughout the course in the light of empirical evidence.
- Collaboration in order to obtain necessary information and knowledge from others to carry out complex tasks.