BST 1612 Applied Macroeconomics
Macroeconomics is the study of a country's economy as a whole and the international relationships between countries. The discipline deals with phenomena such as long-term economic growth and sustainability, inequality, cyclical movements, financial instability, unemployment, inflation and current external account deficits or surpluses. Analyses of how the authorities may influence the macroeconomic development through fiscal and monetary policies form a central element in this course.
The course is intended to provide the students with an insight into macroeconomic mechanisms and relations that are important to the Norwegian economy and Norwegian politics both in the short and long term. There will be an emphasis on the interaction between financial markets, monetary and fiscal policies and business cycles. The monetary policy of Norges Bank and fiscal policy issues will form central elements. Through the discussion of important and relevant macroeconomic problems such as macroeconomic instability, financial crises, cryptocurrencies, the use of oil revenues, the great increase in the number of elderly people and economic globalisation, economic growth and sustainability, etc., the course places an emphasis on linking theoretical insight to important macroeconomic phenomena and development features.
The course places an emphasis on econometric methods and digital tools for the analysis of cyclical data, and on making forecasts based on estimated model contexts. Thus, the course provides an introduction to time series econometrics and relevant software.
On completion of the course the students shall have an understanding of:
- The interaction between the real economy, the money market, the currency market and the labour market, and in this context be able to account for potential effects of the economic policy related to central variables such as aggregate production, unemployment, inflation, the current balance and the balance of trade.
- The meaning and importance of financial stability and familiarity with the measures the authorities may implement to preserve financial stability.
- Central driving forces for economic growth and sustainability, and an ability to account for how the long-term growth path is affected by underlying factors such as savings rate and growth in total factor productivity.
- Short-term and long-term effects of the use of oil revenues in the Norwegian economy, as well as an insight into fundamental problems related to public budgets and pensions.
On completion of the course the students shall be able to:
- Find macroeconomic data and perform empirical analyses of these data on their own.
- Discuss macroeconomic problems by means of various model-based approaches and as part of this be able to account for strengths and weaknesses in connection with different macroeconomic models.
The students shall have an ethical awareness of the basic conflicts of interests and macroeconomic objectives related to economic policy, including the potential conflict between macroeconomic efficiency and income equality.
The students shall be able to assess a macroeconomic problem from different angles with respect to the economic interests of various groups.
The students are to develop a critical sense regarding possible divergences between stated political objectives and ambitions and the probable actual effects of economic policies.
- Macroeconomic data sources
- Economic growth and sustainability. Inequality and growth.
- Financial markets. Asset bubbles and financial crises in an international perspective.
- Financial stability
- Business cycle theory
- Fiscal policy
- Monetary policy
- Saving, national wealth and fiscal policy. Sustainable public debt.
- Oil wealth and industry structure
- Applied econometrics
The course consists of 90 hours of module-based teaching.
Two years of college education in economics and business administration, marketing or equivalent is required for taking the course.
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
- MET 3431 Statistics or MET 2920 Statistics
- MET 3590/MET 3592 Econometrics, MET 2123 Method and Data Analysis or MET 3515 Mathematical Analysis
- SØK 3520 Microeconomics
- SØK 3525 Macroeconomics
Alternatively, equal knowledge from another educational institution may be accepted.
Form of assessment:
Examination when next scheduled course
|Form of assessment:
|Examination when next scheduled course
Prepare for teaching
Group work / Assignments
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 15 ECTS credit corresponds to a workload of at least 400 hours.