SØK 3525 Macroeconomics

SØK 3525 Macroeconomics

Course code: 
SØK 3525
Department: 
Economics
Credits: 
7.5
Course coordinator: 
Terje Synnestvedt
Hans-Martin Straume
Product category: 
Bachelor
Portfolio: 
Bachelor - Core Courses
Semester: 
2018 Spring
Active status: 
Active
Teaching language: 
Norwegian
Course type: 
One semester
Introduction

Macroeconomics is the study of the economy as a whole. It deals with phenomena such as long-run economic growth, business cycles, unemployment, inflation, and deficits on the balance of payments. Analyses on how governments and central banks can influence the economy through fiscal and monetary policy are particularly important in macroeconomics.

This course differs from the course SØK 3432 Macroeconomics in several areas. Here we go in depth into the foundation for economic growth and the causes of structural unemployment. Furthermore, we go deeper into the monetary and fiscal policy and among others look at long-term, dynamic effects of fiscal policy. This course also analyzes economic mechanisms both by mathematical and graphical models.

Learning outcomes - Knowledge

The main goal of this course is to provide an introduction to the macroeconomics field to provide the students with a good basis for keeping up with what's happening in the Norwegian economy and the background of the economic policies of the Government and Norges Bank (the Central Bank of Norway). You will also learn how the Norwegian economy is influenced by international factors and what kinds of economic indicators contain the latest information about the current economic situation. In order to acquire this foundation, students must be familiar with the concepts, relationships and facts that will enable them to understand the basic causes of phenomena such as business cycles, economic growth and stagnation, unemployment and inflation, as well as how economic policies affect the economic development in both the short and the long term.

After completing this course students should be able to explain macroeconomic concepts, indicators and key objectives and instruments of Norwegian economic policy, including understanding the relationship between objectives and means. The students should be able to explain the fundamental distinction between the real economy on the one hand and money and financial issues on the other. They should have gained knowledge about key driving forces behind economic growth, and on the basis of data, be able decide whether a country's economic growth is balanced or not. Monetary policy has a key role in economic policy and students should be able to explain various aspects of having an inflation target. They must have a good overview of economic relationships and established macro-economic theories and empirical knowledge and be able to analyze the functioning of the economy and the effects of economic policy in a small open economy with flexible exchange rates. The students should be able to conduct such discussions using both mathematical and graphical models. They should also have developed a critical sense that enables them to distinguish between correct and incorrect statements about macroeconomics.

Learning outcomes - Skills

After taking this course the students should be able to find relevant economic data and indicators from respectable data sources in order to describe the macroeconomic situation and recent history of a particular country. Students should also be able to decide which macroeconomic theory or model is most relevant for a particular policy issue, and be able to present macroeconomic models both mathematically and graphically. They should also be able to describe economic policy, as well as distinguish between descriptive and normative statements.

Learning Outcome - Reflection

After taking this course the students should be ethically conscious about the conflicts of interest and inherent goal conflicts and trade-offs in macroeconomic policy. They should be able to look at a macroeconomic policy issue from different perspectives in regard to the interests of different groups in society. They should also have developed a critical attitude making them conscious of the difference between political ambitions behind announcements of goals and the real effects of macroeconomic policies in practice.

Course content
  • National accounts and economic indicators
  • Population development and the wealth of nations
  • Economic growth
  • Structural unemployment
  • Money neutrality: The distinction between real and nominal variables
  • Money, prices and exchange rates
  • Business cycles and the short-run effects of monetary and fiscal policy
  • Asset bubbles and financial crisis
  • Inflation, expected inflation and output gap
  • Monetary policy: Inflation targeting, interest rate sand inflation, policy dilemmas
  • Fiscal policy: Taxes, welfare, public assets and debts, pension obligations
Learning process and requirements to students

The course consists of 36 hours of lectures and 6 hours of plenary exercises

E-learning
When course is delivered online, lecturer, in cooperation with the Academic Servises Network, will organize an appropriate combination of digital teaching and lectures. Online students are also offered a study guide to contribute to progression and overview. Total recommended time spent for completing the course also applies here.

Software tools
No specified computer-based tools are required.
Additional information

Re-sit examination
Students that have not gotten approved the coursework requirements, must re-take the exercises during the next scheduled course.

Students that have not passed the written examination or who wish to improve their grade may re-take the examination in connection with the next scheduled examination.

Qualifications

Higher Education Entrance Qualification.

Required prerequisite knowledge

This course requires prior knowledge in mathematics, statistics, and microeconomics.

Mandatory courseworkCourseworks givenCourseworks requiredComment coursework
Mandatory53Five sets of coursework requirements will be posted on It’learning. Three of these have to be approved in order for the student to be allowed to take the final exam. Feedback will be given both electronically and in class. Information about deadlines will be given at the start of the term.
Mandatory coursework:
Mandatory coursework:Mandatory
Courseworks given:5
Courseworks required:3
Comment coursework:Five sets of coursework requirements will be posted on It’learning. Three of these have to be approved in order for the student to be allowed to take the final exam. Feedback will be given both electronically and in class. Information about deadlines will be given at the start of the term.
Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Structured test
Exam code:
SØK35251
Grading scale:
ECTS
Grading rules:
Internal examiner
Resit:
Examination every semester
100Yes3 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
Individual
Exams:
Exam category:Submission
Form of assessment:Structured test
Weight:100
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
Duration:3 Hour(s)
Comment:
Exam code:SØK35251
Grading scale:ECTS
Resit:Examination every semester
Exam organisation: 
Ordinary examination
Total weight: 
100
Workload activityDurationType of durationComment student effort
Teaching36Hour(s)
Review of assignments in plenary6Hour(s)
Prepare for teaching131Hour(s)
Group work / Assignments24Hour(s)
Examination3Hour(s)
Expected student effort:
Workload activity:Teaching
Duration:36 Hour(s)
Comment:
Workload activity:Review of assignments in plenary
Duration:6 Hour(s)
Comment:
Workload activity:Prepare for teaching
Duration:131 Hour(s)
Comment:
Workload activity:Group work / Assignments
Duration:24 Hour(s)
Comment:
Workload activity:Examination
Duration:3 Hour(s)
Comment:
Sum workload: 
200

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.

Talis literature

Obligatorisk/Compulsory

Book
Authors/Editors År Tittel Edition Publisher StudentNote
Steigum, Erling 2004 Moderne makroøkonomi   Gyldendal akademisk Eksakt pensum oppgis ved kursstart.
Keeley, Brian; Love, Patrick 2010 From crisis to recovery: the causes, course and consequences of the great recession   OECD Chapter 1 - 3 (pages 9 - 49)
Document
Authors/Editors År Tittel Edition Publisher StudentNote
    Pengepolitisk rapport med vurdering av finansiell stabilitet      
  2015 Meld. St. 1 (2015–2016) : Nasjonalbudsjettet 2016   regjeringen.no  

Anbefalt/Recommended

Book
Authors/Editors År Tittel Edition Publisher StudentNote
Krugman, Paul R. cop. 2012 End this depression now!   W. W. Norton & Company