Faculty of Economics and Business
BACHELOR IN ECONOMICS SECOND YEAR Course
Macroeconomics II
Code
802360
Module
Economic Analysis
Area
Macroeconomics
Nature
Compulsory 6
Attendance
3,6
Credits
Non Attendance
2,4
Year
3
Semester
5
COORDINATION DEPARTMENT Fundamentos del Análisis Económico I
COORDINATOR AND CONTACT Rafaela Mª Pérez Sánchez;
[email protected]
SYNOPSIS BRIEF DESCRIPTION Formal analysis of the driving forces behind income, prices and other macroeconomic variables in open and closed economies.
PRE-REQUISITES None.
OBJETIVES Theoretical knowledge of aggregate macroeconomic behavior in a macroeconomic model (IS– LM model for closed and open economies) to capture the interactions between basic aggregate variables in goods and financial markets. To provide a comprehensive view of macroeconomics linked to actual macroeconomic phenomena.
Faculty of Economics and Business
COMPETENCES General: CG1, CG2, CG3, CG4 Transversal: CT1, CT2, CT3 Specific: CE3, CE6, CE8, CE9
LEARNING METHODOLOGY A mixed methodology of teaching and learning will be used in all educational activities with the aim of encouraging students to develop a collaborative and cooperative attitude in the pursuit of knowledge.
TOPICS COVERED (Syllabus) 1. Introduction: The main Macroeconomic Problems and National Accounts 2. The goods market 3. The financial markets 4. The IS-LM Model 5. Opening goods and financial markets 6. The Mundell – Fleming Model
TEACHING ACTIVITIES DISTRIBUTION Theoretical lessons
% of Total Credits
30%
Practical lessons
% of Total Credits
15%
Other Activities
% of Total Credits
55%
Including personalized & group tutoring and evaluation activities
ASSESSMENT Exams
% Share of Final Grade
50 %
% Share of Final Grade
40%
Final Exam
Other Activities
Cases & Quizzes / Presentation of exercises
Other activities Active participation in the classroom
& Share of Final Grade 10%
Faculty of Economics and Business
EVALUATION CRITERIA A final exam (50% of the final grade) plus a continuous assessment system including at least 2 intermediate exams (50% of the final grade). To pass the course a minimum threshold mark will be required for the essay questions in the final exam. ‘Not taken’ criteria: February examination session: Any student that has taken the second (or following) intermediate exam will obtain a mark in the February session, whether he/she has taken or not the final exam. “Convocatoria extraordinaria”: Regardless the previous rule, only the student that does not take the September exam will be marked as ‘not taken’.
Faculty of Economics and Business
TIMETABLE Week
Topic
Classroom work
Work outside the classroom
1
1. Introduction. National Accounts. Introduction. Main Macroeconomic Variables in the National Accounts. Main identities. Exercises on National Accounts.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
2ª
2. The goods market Composition of GDP. Goods demand (private consumption, investment, public expenditure). Equilibrium production with fixed taxes. The multiplier.
3ª
2. The goods market The fiscal policy. La paradox of saving. Endogenous taxes. Exercises about the goods market. 3. The financial markets The Money market: assumptions. The demand for Money. The Money supply. The equilibrium interest rate.
4ª
1st Seminar. Practical case 1 on National Accounts
Faculty of Economics and Business
5ª FIRST INTERMEDIATE EXAM. National Accounts and The Goods Market 3. The financial markets The monetary policy. The role of the banks. The monetary multiplier. 6ª
Exercises on financial markets. 4. The IS – LM Model The goods market and the IS curve. Derivation and shifts of the IS curve. The financial markets and the LM curve. Derivation and shifts of the IS curve. The equilibrium in the IS-LM model.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
7ª
4. The IS – LM Model Demand perturbations. Fiscal policy. Monetary policy. Other demand perturbations. The European Central Bank and the monetary policy. Extensions of the IS- LM Model: ( I ) Leverage and shocks amplifications. ( II ) The role of expectations in the determination of income.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
8ª
2nd seminar. Practical case 2 on goods market Practical case 3 on financial markets (II)
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
9ª
Exercises on the IS – LM Model.
In the theoretical lessons, the lecturer will
Study the theory.
Faculty of Economics and Business
present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Solve the proposed exercises and practical cases.
10ª
2nd Intermediate Exam. The IS – LM Model 5. Opening goods and financial markets The Balance of Payments. Nominal and Real Exchange rate. The currency market with fixed and flexible exchange rate.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
11ª
5. Opening of goods and financial markets The IS curve in an open economy. The election between national and foreign assets: uncovered interest parity. Exercises about open goods and financial markets.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
12ª
3rd seminar. Practical case 3 on financial markets (II) Practical case 4 on exchange rate market
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
13ª
6. The Mundell – Fleming model Assumptions, equations and equilibrium in the model with fixed and flexible exchange rate. Demand shocks, fiscal policy and monetary policy with flexible and fixed exchange rate regimes. Other perturbations.
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
Faculty of Economics and Business
14ª
Exercises on the Mundell – Fleming model. 3rd INTERMEDIATE EXAM. The Mundell – Fleming model.
15ª
In the theoretical lessons, the lecturer will present the basic theory and discuss practical cases and problems. In the weekly practical lessons (“seminars”) the students will solve the proposed exercises.
Study the theory. Solve the proposed exercises and practical cases.
(The syllabus is designed for a 14 Weeks course. The course plan has to be adapted by the lecturers once official parties have been taken into account) TENTATIVE INTERMEDIATE EXAMS CALENDAR: 1st EXAM: 5ª WEEK OF THE COURSE 2nd EXAM: 10ª WEEK OF THE COURSE 3rd EXAM: 14ª WEEK OF THE COURSE NOTE: This course plan is only tentative because it needs to be adjusted according to the official parties and the number of intermediate exams.
Faculty of Economics and Business
RESOURCES BASIC BIBLIOGRAPHY Blanchard, O. (2008). Macroeconomics. 5th edition. Prentice Hall.
COMPLEMENTARY BIBLIOGRAPHY Mankiw, N.G. (2012). Macroeconomics. 8th Edition. Worth Publishers Abel, A.B., Bernanke, B., Croushore, D. (2013). Macroeconomics. 8th Edition. Prentice Hall
OTHER RESOURCES
