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ECO 201 Intermediate Macroeconomics

National income accounting; theories of growth; the government budget, fiscal and monetary policies in the short-run; international monetary regimes and domestic stabilization policies; wage-price flexibility and adjustment to macroeconomic shocks; unemployment, inflation, and the natural rate; supply shocks, productivity, and unemployment; monetary policy, dynamic inconsistency, and credibility. The course also applies the analytical tools of macroeconomics to consider current macroeconomic policy concerns such as the costs and benefits of joining a common currency; the persistence of unemployment in Europe; the consequences of rising oil prices for the macroeconomy; the implications of a stock market boom for private savings; the implications of technological change on inflation, employment, and growth.

Learning Outcomes: The aim of the course is to familiarize the student with the tools of macroeconomic analysis and show how these tools can be applied in macro-policy issues. Upon successful completion of the course students should be able to:
  • Build alternative macroeconomic models
  • Apply analytical reasoning to derive and compare their main predictions
  • Conceptualize actual macroeconomic questions by means of these models
  • Evaluate critically alternative macroeconomic policies.
  • Appreciate how the IS/LM model can be used to analyze the choice of monetary instrument under uncertainty
  • Be aware of the differences in analytical approaches of the New Classical and New Keynesian traditions and understand the influence of rational expectations in modern macroeconomics
Recommended Text(s)
Macroeconomics
McGraw-Hill McGraw-Hill Companies, Inc. LATEST EDITION
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