Course 2022-2023

Macroeconomics [ECGEB270]

  • 4 credits
  • 45h+15h
  • 1st quarter
Language of instruction: English

Learning outcomes

This course covers the basic theory of the determination of aggregate output, unemployment, interest rates, prices, inflation, and exchange rates. The focus of the analysis lies on the short run and the medium run. Various real world applications are analyzed and the effects of different macroeconomic policies are discussed.

Content

The course consists of 5 parts.

The first part gives an introduction and explains the main macroeconomic variables. Furthermore, it presents some basic concepts of national income accounting.

The second part deals with the short run which is characterized by rigid wages and prices. This part contains an analysis of the market for goods and services and of financial markets, and introduces the IS-LM model. This model is then used to analyze the effects of monetary and fiscal policies and to understand some aspects of the financial crisis that started in 2008.

The third part of the course deals with the medium run in which wages and prices are flexible. The labor market is studied and the link between inflation, expectations and unemployment is analyzed. The IS-LM-PC model is introduced and used to analyze the effects that monetary and fiscal policies, as well as supply shocks, have in the medium run. The model is then used to study the Covid economic crisis and the recent surge in inflation.

The fourth part analyzes the open economy and the impact of different exchange rate regimes.

The fifth part studies various topics related to the importance of expectations in macroeconomics.

Table of contents

Part 1: Introduction

Part 2: Short run (business cycles)

Part 3: Medium run (inflation)

Part 4: Open economy

Part 5: Expectations

Exercises description

In order to enable students to apply the theoretical knowledge and to get familiar with the required calculations, various exercises are solved and discussed in the tutorials and during the lectures. Students are encouraged to prepare the exercises in advance and to actively participate in the tutorials. The problem sets are uploaded on Webcampus in advance and the solutions later on. During the tutorials, students can ask various questions related to the content of the course.


Prerequisites

Economie politique [DROIB154]

Teaching methods

The course is taught in english and is based on the book "Macroeconomics: A Eurpean Perspective" by Blanchard, Amighini et Giavazzi (4th or 3rd edition). Students that have difficulties in understanding the english version of the book can also use the french version ("Macroéconomie" of Blanchard and Cohen, 8th or 7th edition) which is, however, not identical. The presentation slides can be accessed via Webcampus. 

Students are invited to ask questions during the course. Even though the slides and the book cover most of the content, it is advised to take complementary notes.

There will be a Q&A session at the end of the semester. Students can also arrange meetings with the tutors if they have questions.

Evaluations

The different parts of the course are closely related. In order to understand the content, regular studying is required. Students are advised to carefully read the related chapters in the book and to prepare the exercises in advance.

The exam is written and closed book. The exam questions are asked in english, but students are allowed to use dictionnaries and to answer the questions in french if they prefer. The exam covers all 5 parts of the course and contains questions about the content of the course and the exercises. Only the use of non-programmable calculators is allowed during the exam.

The dates of the exam inspection(s) are announced via Webcampus after the exam.

Recommended readings

Macroeconomics: A European Perspective

Authors: O. Blanchard, A. Amighini, F. Giavazzi

Editor: Pearson; Edition : 4 (2021)

Language: English

ISBN-13: 9781292360898

Language of instruction

English

Location for course

NAMUR

Organizer

Faculté des sciences économiques, sociales et de gestion
Rue de Bruxelles, 61
5000 NAMUR

Degree of Reference

Undergraduate Degree