DRE 7034 Advanced Macroeconomics II

DRE 7034 Advanced Macroeconomics II

Course code: 
DRE 7034
Program of study: 
Course coordinator: 
Plamen Toshkov Nenov
Product category: 
PhD Economics courses
2020 Autumn
Active status: 
Teaching language: 
Course type: 
One semester

This half semester course aims to introduce students to the basic models of business cycles used in modern macroeconomics. We will start with the Real business cycles model and examine its empirical performance. We will then study the New Keynesian Model and introduce monetary policy in that framework.

Learning outcomes - Knowledge

After taking this course, students will be able to understand the main models used in modern business cycle analysis and monetary policy analysis. Specifically, they will gain fundamental knowledge about:

  • Key facts about the business cycles;
  • The Real business cycles model;
  • The New Keynesian model;
  • Introduction to Monetary Policy.
Learning outcomes - Skills

Students should be able to:

  • Understand the basics of several workhorse models in business cycle analysis.
  • Apply log linearization techniques.
  • Analyze the impact of monetary policy on the economy.
General Competence

Students should  be able to

  • develop an understanding of the mechanisms and interactions involved in the functioning of the macroeconomy.
  • critically assess the underlying assumptions of the methods used. 
Course content


  • Facts about the business cycle
  • Real Business Cycle theory and performance
  • Log-linearization
  • The New Keynesian Model
  • Intro to Monetary Policy

There will be 5 lectures (15 lecture hours). In addition, 3 lecture hours will be used for exercises and for providing feedback to students on problem sets. Students are required to participate in class – both in discussions and by presenting models/material from the reading lists –  as well as solve and hand in solutions to exercises and problems.

Teaching and learning activities

Teaching activities include:

  • formal lectures;
  • practical exercises on the computer;
  • out-of-the-classroom discussions and consultations.

Learning activities include:

  • preparing with assigned readings and instructional content through other media (e.g. online videos) ahead of classroom sessions;
  • active participation in classroom discussions;
  • work on several  problem sets, including computer exercises;
  • preparing for and taking the final written assessment.
Software tools

Enrollment in a PhD programme is a general requirement for participation in PhD courses at BI Norwegian Business School.
External candidates are kindly asked to attach confirmation of enrollment in a PhD programme when signing up for a course. Other candidates may be allowed to sit in on courses by approval of the course leader. Sitting in on a course does not permit registration for the course, handing in exams or gaining credits for the course. Course certificates or confirmation letters will not be issued for sitting in on courses.

Required prerequisite knowledge

The course DREXXX1 Advanced Macroeconomics I is a required prerequisite for this course. Exemptions can be made only on a case-by-case basis after consultations with the instructor.

Exam categoryWeightInvigilationDurationGroupingComment exam
Exam category:
Form of assessment:
Written submission
Exam code:
DRE 70341
Grading scale:
Grading rules:
Internal and external examiner
Examination when next scheduled course
100No3 Hour(s)Individual
Exam category:Submission
Form of assessment:Written submission
Grouping (size):Individual
Duration:3 Hour(s)
Exam code:DRE 70341
Grading scale:Pass/fail
Resit:Examination when next scheduled course
Type of Assessment: 
Ordinary examination
Total weight: 
Student workload
Teaching on Campus
15 Hour(s)
Feedback activities and counselling
3 Hour(s)
Student's own work with learning resources
20 Hour(s)
Prepare for teaching
10 Hour(s)
Group work / Assignments
20 Hour(s)
5 Hour(s)
3 Hour(s)
Sum workload: 

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 3 ECTS credit corresponds to a workload of at least 80 hours.