GRA 6631 Macroeconomic Policy
Macroeconomics is the study of the economy as a whole. The course offers an introduction to the main tools of macroeconomic policy – monetary and fiscal policy. It provides the students with analytical skills and applied insights to understand the tradeoff faced by policymakers. The course uses workhorse models used in central banks and other policy institutions and develops digital tools to help analyzing and understanding important policy problems.
By the end of the course, students will know
- the tradeoffs faced by a central bank when deciding key policy rates and the gains from commitment.
- the new policy tools – such as forward guidance and macroprudential policy – developed during and in the aftermath of the recent international financial crises.
- what is needed for public debt to be sustainable and long-run consequences of fiscal policy.
Students will be able to:
- analyze monetary and fiscal policy using advanced macroeconomic models.
- calibrate and analyze models using MatLab.
This course should lead students to reflect about the forces that influence the economy as a whole and how policy will affect macroeconomic outcomes.
The course consists of three parts:
- Monetary policy in the new Keynesian model.
- Macroprudential policy and financial stability.
- Fiscal policy.
Complementary learning tools will be used during the course. There will be tutorials with exercises in addition to lectures.
Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class that is not included on the course homepage/It's learning or text book.
All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have spesific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.
Due to the Covid-19 pandemic, there may be deviations in teaching and learning activities as well as exams, compared with what is described in this course description.
Information about what is taught on campus and other digital forms will be presented with the lecture plan before the start of the course each semester.
GRA 6634 Advanced Macroeconomics and GRA 6639 Business Cycles or equivalent
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination when next scheduled course
|100||Yes||3 Hour(s)||Individual||Written examination under supervision|
|Form of assessment:||Written submission|
|Support materials:|| |
|Comment:||Written examination under supervision|
|Resit:||Examination when next scheduled course|
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.