Checking date: 26/07/2020

Course: 2022/2023

Study: Master in Development and Economic Growth (255)


Department assigned to the subject: Department of Economics

Type: Compulsory
ECTS Credits: 3.0 ECTS


Requirements (Subjects that are assumed to be known)
Undergraduate macroeconomics, microeconomics and multivariate calculus
Understand measurement and basic macroeconomic variables Understand financial relationships between agents in the open economy (government, central bank and private sector with the rest of the world) and get knowledge about the financing of central government Understand basic modern consumption and investment theories Understanding basic monetary and fiscal policy concepts Study recent developments in the open economy
Skills and learning outcomes
Description of contents: programme
Measurement and definitions in macroeconomics Budget constraints: financial relationships between government, central bank, private sector and the rest of the world Consumption theory: Keynesian theory, Intertemporal Utility Maximization Problems, Permanent consumption hypothesis and application to financial markets Investment theory: capital demand, user cost of capital, Tobin¿s Q Fiscal and monetary policy: key concepts as ¿Ricardian Equivalence¿, concepts of money demand. Interaction between fiscal and monetary policy Open Economy: the current account and the capital account. Small open economy models. Technology shocks, terms of trade shocks, interest rate spread shocks
Learning activities and methodology
Theoretical classes to introduce and develop concepts Problem sets resolution
Assessment System
  • % end-of-term-examination 60
  • % of continuous assessment (assigments, laboratory, practicals...) 40

The course syllabus may change due academic events or other reasons.