The students should develop a critical understanding of the main issues and propositions of macroeconomics. They shall understand why the Classical and the Keynesian school differ on the analysis of economic processes and the emergence of crises as well as concerning the resulting recommendations with respect to the optimal design of fiscal and monetary policy. They shall develop a feeling for the advantages and limitations of the application of mathematical macroeconomic models and learn what types of models are appropriate for the study of specific issues.
1) Introduction: Evolution of macroeconomic variables in selected countries during the last decades
2) Goods market: national income accounting, multiplier models
3) Financial markets and the IS-LM model: short-run effects of monetary and fiscal policy in a closed economy
4) Labor market, Phillips curve and the IS-LM-PC model: medium-run effects of monetary and fiscal policy in a closed economy
5) Goods and financial markets in an open economy
The lecture follows the 7th edition of the German textbook Olivier Blanchard und Gerhard Illing, Makroökonomie, Pearson Studium, 2017.
Attention: Substantial changes were made from the 7th edition compared to older editions. Therefore, older editions are not suitable to follow the lecture!
It is not necessary to buy the textbook.
