Covers economic activity and growth, determination of income, employment, output, inflation, aggregate demand and supply, money and banking, monetary and fiscal policies, and international economic issues.
ECON 2020: Principles of Microeconomics
MATH 1430: College Algebra (Recommended)
Blanchard, O. (2017). Macroeconomics, 7th Edition. Pearson Education.
Students are required to inform themselves of WUV academic policies.
A full list of these policies is available on the WUV website: http://webster.ac.at/academic-policies
A Tour of the World [Slides][Slides]
The Goods Market [Slides]
Financial Markets I [Slides]
Goods and Financial Markets: The IS-LM Model [Slides]
Financial Markets II: The Extended IS-LM Model [Slides]
The Labor Market [Slides]
The Philips Curve, the Natural Rate of Unemployment & Inflation [Slides]
From the Short to the Medium Run: The IS-LM-PC Model [Slides]
The Facts of Growth [Slides]
Saving, Capital Accumulation, & Output [Slides]
Technological Progress & Growth [Slides]
Technological Process: The Short, the Medium, & the Long Run [Slides]
Financial Markets & Expectations [Slides]
Expectations, Consumption, & Investment [Slides]
Expectations, Output, & Policy [Slides]
Openness in Goods Market in an Open Economy [Slides]
The Goods Market in an Open Economy [Slides]
Output, the Interest Rate, & the Exchange Rate [Slides]
Exchange Rate Regimes [Slides]
Should Policy Makers Be Restrained? [Slides]
Fiscal Policy [Slides]
Monetary Policy [Slides]
The Story of Macroeconomics [Slides]
Week 1
A Tour of the World
· The Crisis
· The United States
· The Euro Area
· China
A Tour of the Book
· Aggregate Output
· The Unemployment Rate
· The Inflation Rate
· Okun's Law and the Philips Curve
Week 2
The Goods Market
· The Composition of GDP
· The Demand for Goods
· Investment Equals Saving
Financial Markets
· The Demand for Money
· Determining the Interest Rate
· The Liquidity Trap
Week 3
The IS-LM Model
· The Goods Market and the IS Relation
· The Financial Market and the LM Relation
· Putting the IS and the LM Relations Together
· Using a Policy Mix
The Extended IS-LM Model
· Nominal versus Real Interest Rates
· Risk and Risk Premia
· The Role of Financial Intermediaries
· Extending the IS-LM
Week 4
The Labor Market
· Wage Determination
· Price Determination
· The Natural Rate of Unemployment
The Philips Curve, the Natural Rate of Unemployment, and Inflation
· Inflation, Expected Inflation, and Unemployment
· The Philips Curve and Its Mutations
· The Philips Curve and the Natural Rate of Unemployment
Week 5
The IS-LM-PC Model
· Dynamics and the Medium Run Equilibrium
· Fiscal Consolidation Revisited
· The Effects of an Increase in the Price of Oil
The Facts of Growth
· Measuring the Standard of Living
· Growth in Rich Countries since 1950
· Thinking about Growth
Week 6
Saving, Capital Accumulation, and Output
· Interaction between Output and Capital
· The Implications of Alternative Saving Rates
· Physical versus Human Capital
Technological Process and Growth
· The Determinants of Technological Progress
· Institutions, Technological Progress, and Growth
Week 7
The Short, the Medium, and the Long Run
· Productivity, Output, and Unemployment in the Short Run
· Productivity and the Natural Rate of Unemployment
· Technological Progress, Churning, and Inequality
Financial Markets and Expectations
· Expected Present Discounted Values
· Bond Prices and Bond Yields
· The Stock Market and Movements in Stock Prices
· Risk, Bubbles, Fads, and Asset Prices
Week 8
Expectations, Consumption, and Investment
· Consumption
· Investment
· The Volatility of Consumption and Investment
Expectations, Output, and Policy
· Expectations and Decisions
· Monetary Policy, Expectations, and Output
· Deficit Reduction, Expectations, and Output
Week 9
Review
Week 10
Openness in Goods and Financial Markets
· Openness in the Goods Market
· Openness in Financial Markets
The Goods Market in an Open Economy
· The IS Relation in the Open Economy
· Equilibrium Output and the Trade Balance
· Depreciation, the Trade Balance, and Output
· The J-Curve
· Saving, Investment, and the Current Account Balance
Week 11
Output, the Interest Rate, and the Exchange Rate
· Equilibrium in the Goods Market
· Equilibrium in the Financial Market
· Putting Goods and Financial Markets Together
· The Effects of Policy in an Open Economy
· Fixed Exchange Rates
Exchange Rate Regimes
· The Medium Run
· Exchange Rate Crises under Fixed Exchange Rates
· Exchange Rate Movements under Flexible Exchange Rates
· Choosing between Exchange Rate Regimes
Week 12
International Monetary Systems
· Gold Smuggling and the Birth of the UAE Dirham
· The International Gold Standard and the Great Depression
· The External Balance Problem under Bretton Woods
Optimum Currency Areas and the Euro
· How the European Single Currency Evolved
· The Euro and Economic Policy in the Euro Zone
· The Theory of Optimum Currency Areas
· The Euro Crisis and the Future of EMU
Week 13
Should Policy Makers Be Restrained
· Uncertainty and Policy
· Expectations and Policy
· Politics and Policy
Fiscal Policy
· The Government Budget Constraint
· Ricardian Equivalence, Cyclical Adjusted Deficits, and War Finance
· The Dangers of High Debt
Week 14
Monetary Policy
· From Money Targeting to Inflation Targeting
· The Optimal Inflation Rate
· Unconventional Monetary Policy
· Monetary Policy and Financial Stability
The Story of Macroeconomics
· Keynes and the Great Depression
· The Neoclassical Synthesis
· The Rational Expectation Critique
Week 15
Review