Macroeconomics 1

Aims of the course

Course goals:
- To develop fundamental knowledge of macroeconomic analysis and policy in the institutional framework of the EU
- To develop an understanding of the underlying economic logic of the workings of a mixed economy and the ways in which macroeconomic problems are resolved
- To develop a level of theoretical thinking and application of the fundamental knowledge in an analysis of equilibrium and changes in the national economy
- To develop the ability to apply positive knowledge in the analysis of measures and positions of economic policy-makers.

Course syllabus

1. Basic economic institutions. Macroeconomic problems and public choice.
2. Macroeconomic processes and national income accounting. Economic and social welfare. Sustainable development.
3. Macroeconomic model of full employment. Three markets. AS/AD model. General equilibrium.
4. Macroeconomic model of unemployment. Keynesian model. IS/LM model. Disequilibrium.
5. Money and banking system. Money instruments and politics. EU monetary system.
6. Fiscal system and politics. Automatic fiscal policy and balanced budget. EU and fiscal federalism.
7. International markets. Exchange rate mechanisms. Exchange rate and balance of payments. EU and euro.
8. Economic problems and EU: economic growth and productivity, business cycles, unemployment, inflation.
9. Economic policy. Tolls and instruments. Different approach to solve economic problems. EU and efficiency of macroeconomic policies.
10. Use economic reasoning. Different macroeconomic schools and theories.

Course director(s)