SØK xx34 Macroeconomics and Economic Application

SØK xx34 Macroeconomics and Economic Application

Course code: 
SØK xx34
Department: 
Economics
Credits: 
7.5
Course name in Norwegian: 
Makroøkonomi og økonomisk anvendelse
Product category: 
Bachelor
Portfolio: 
Bachelor of Science in Business and Economics - Programme Courses
Semester: 
2026 Spring
Active status: 
Planned
Level of study: 
Bachelor
Teaching language: 
Norwegian
Course type: 
One semester
Learning outcomes - Knowledge

On completion of the course the students will have insight about:

  • The basic concepts and methods of modern macroeconomics.
  • The properties of the aggregate production function, and how the Solow growth model can be applied to the dynamic analysis of economic growth in the long term.
  • How exchange rates are formed under full international capital mobility and how monetary policy affects exchange rates.
  • How monetary policy affects the demand for private consumption, gross fixed investment and net exports in the short run.
  • Short and long-run Phillips curves and the effects of demand and supply shocks on the rate of inflation.
  • Nominal anchors, monetary unions such as EMU, as well as advantages and disadvantages of joining EMU compared to retaining a national currency.
  • Monetary policy trade-offs when inflation-targeting Central Banks set policy interest rates, based on theories of optimal monetary policy rules derived from minimization of loss functions.
  • Fiscal policy goals and instruments in the short and medium run. Effects of spending of government petroleum revenues on the real exchange rate and industrial structure, which is also important for the understanding of long run sustainability.
Learning outcomes - Skills

On completion of the course the students are to be able to:

  • Explain the main macro-economic concepts, indicators and key objectives and instruments of Norwegian long-term economic policy.
  • Demonstrate good overview of the macroeconomic context and empirical patterns.
  • Use digital tools and applications (like online databases and Excel) to extract and analyze information about macroeconomic measures.
  • Show understanding of the importance of technological change, digitalization, and innovation for economic growth, the fundamental institutional and political causes of high material wealth, and the long-run effects of fiscal policy.
  • Be able to analyze how exchange rates are determined under uncovered interest parity. They will master the so-called IS-MP model for a small open economy with a flexible exchange rate.
  • Be able to analyze how different factors affect inflation by means of short-term and long-term macro offers functions and logic of so-called inflationary and deflationary spirals. Central to this, is the connection between expectations and a monetary policy that is sustainable in the long run.
  • Have an insight into the logic of inflation targeting.
  • Be able to see the link between objectives and instruments of fiscal policy and conflict of goals between wealth creation and income distribution.
  • Have an overview of the historical macroeconomic developments in the Norwegian economy, and be able to explain the challenges of and the some of the main mechanisms behind financial crises and debt crises, like the one in Europe in the period 2007-2011.
General Competence

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 consider both national and international macroeconomic policy issues 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. The students should develop an intuitive understanding of the tradeoff between short run policy goals and long-run sustainability.

Course content
  1. National accounts and economic indicators
  2. Long-term economic growth and income distribution between labor and capital.
  3. The Solow model of capital accumulation and economic growth in the long term.
  4. The importance of political and economic institutions and policy for national income and wealth.
  5. Income inequality, economic growth, and long-run sustainability.
  6. Natural resources, the environment and economic growth
  7. Model based analysis of short-term effects of monetary and fiscal policy on aggregate employment and output.
  8. Monetary and fiscal policy under fixed and flexible exchange rates.
  9. Short and long run macro supply functions and Phillips curves.
  10. Monetary policy under flexible inflation targeting.
  11. Fiscal policy: Goals and policy instruments. Spending of petroleum revenues and the real exchange rate.
  12. Macroeconomic development of the Norwegian economy. Asset bubbles, financial and government debt crises.
  13. Long run effects of fiscal policy.
Teaching and learning activities

The core activity will be regular lectures, but with considerable additional elements of:

  • Online material
  • Online material, BI-produced, tailored to the context of Norway and BI
  • Student assistant-led tutoring of problem sets
Software tools
No specified computer-based tools are required.
Qualifications

Higher Education Entrance Qualification.

Required prerequisite knowledge

No particular prerequisites are required.

Total weight: 
0
Sum workload: 
0

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.

Semester

Oversettelser