GRA 6631 Macroeconomic Policy

GRA 6631 Macroeconomic Policy

Course code: 
GRA 6631
Course coordinator: 
Tommy Sveen
Course name in Norwegian: 
Macroeconomic Policy
Product category: 
MSc in Applied Economics
2023 Spring
Active status: 
Level of study: 
Teaching language: 
Course type: 
One semester

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.

Learning outcomes - Knowledge

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.
Learning outcomes - Skills

Students will be able to:

  • analyze monetary and fiscal policy using advanced macroeconomic models.
  • calibrate and analyze models using MatLab.
General Competence

This course should lead students to reflect about the forces that influence the economy as a whole and how policy will affect macroeconomic outcomes.

Course content

The course consists of three parts:

  1. Monetary policy in the new Keynesian model.
  2. Macroprudential policy and financial stability.
  3. Fiscal policy.
Teaching and learning activities

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.

Software tools

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 specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.



Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Required prerequisite knowledge

GRA 6634 Advanced Macroeconomics and GRA 6639 Business Cycles or equivalent

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Form of assessment:
Written submission
Exam code:
GRA 66311
Grading scale:
Grading rules:
Internal and external examiner
Examination when next scheduled course
100Yes3 Hour(s)
  • Bilingual dictionary
Individual Written examination under supervision
Exam category:Submission
Form of assessment:Written submission
Grouping (size):Individual
Support materials:
  • Bilingual dictionary
Duration:3 Hour(s)
Comment:Written examination under supervision
Exam code:GRA 66311
Grading scale:ECTS
Resit:Examination when next scheduled course
Type of Assessment: 
Ordinary examination
Total weight: 
Student workload
36 Hour(s)
Prepare for teaching
108 Hour(s)
Seminar groups
6 Hour(s)
Individual problem solving
12 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 6 ECTS credits corresponds to a workload of at least 160 hours.