Macro-economy

Learning objectives: The aim of this course is to study the main models of macroeconomic analysis in detail, both in closed economies and in open economies. We also analyse the current discussion about the conclusions of some of these models. This course provides not only a wide-ranging survey of modern macroeconomics but also a close contact with current macroeconomic issues.
Using the theoretical study of different macroeconomic models, at the end of the course students should understand how real economies work at the aggregate level, and the fundamental macroeconomic problems that they face in the short run and in the medium run. Students should also be able to identify the policies that can be applied in different situations and their forseeable effects.

The measurement of macroeconomic aggregates: output, employment and inflation. Goods market, labour market and financial market. The IS-LM model. Business cycles and its measurement. Analysis of business cycles: Keynesian model and classical model. Open economies: the Mundell-Fleming model. Aggregate supply and labour market. Demand-side and supply-side macroeconomic policies. The Phillips curve and the natural rate of unemployment.

Basic bibliography:
Blanchard, O. (2017), “Macroeconomía”, 7ª ed., Pearson.
Bande, R. (2016), "Macroeconomía", Createspace independent Pub.

Complementary bibliography:
Blanchard, O.; Amighini, A. and F. Giavazzi, (2012), “Macroeconomía”, 5ª ed., Pearson.
Belzunegui et al. (2013), “Macroeconomía. Problemas y ejercicios resueltos”, 3ª ed., Pearson.
Mankiw, N. G. (2014), “Macroeconomía”, 8ª ed., Antoni Bosch.
Bajo, O. and C. Díaz (2011), “Teoría y Política Macroeconómica”, Antoni Bosch.
Krugman, P. and R. Wells (2016), “Macroeconomía”, 3ª ed., Reverté.

The aim of this course is to develop the student’s ability to apply the basic tools of economic analysis to the study of macroeconomic problems (which in turn trains their logical reasoning).
Using the theoretical study of different macroeconomic models, at the end of the course students should understand how real economies work at the aggregate level, and the fundamental macroeconomic problems that they face in the short run and in the medium run. Students should also be able to identify the policies that can be applied in different situations and their forseeable effects.

Through lectures and problem-solving classes, in which the teacher and the students will also analyse real economic problems. Students will receive a Teaching Guide with detailed information on the specific topics, the reading lists and any other information useful for the students’ work. In the same vein, a Virtual Classroom will be used.

Students should read the references and solve the exercises and problems. Examinations and coursework are part of the learning process and will assess the competences that the student obtains in the course.

Assessment will take into account all the activities done in the course and will include all the different competencies acquired. Final examination counts for 70% and coursework counts for 30% of the final mark. The Teaching Guide describes examinations and coursework in detail.

The mark obtained in coursework will not be considered in other academic years.
Students granted permission not to attend lectures will only be assessed by examination.

In addition to the 48 hours of lectures and classes, the student should dedicate 102 hours to personal work, that includes not only individual or group study, further reading and exercises, but also the time to prepare written examinations.

To pass this subject, we recommend that the students:
(a) make an effort to study every week,
(b) solve and discuss practical exercises,
(c) read the recommended references,
(d) attend the office hours to solve any questions related to the subject.

Students should realize that the lessons of the course are closely related. Every lesson is not independent, so it cannot be understood in isolation. The objective is to understand how the economy works as a whole, so students must bear in mind how each part relates to the others.