Macroeconomics for Economic Policy

Course Term: 
1st year
ECTS credits: 
Course Description: 

The objective of the course is to provide a systematic introduction to macroeconomics for students of
Economic Policy. The course is designed to provide students with a unified framework that can be used to
analyze key macroeconomic issues such as growth, inflation, budget deficits, recessions, productivity,
interest rates, exchange rates, trade balance, monetary and fiscal policy. We develop simple theories that
highlight the micro level underpinnings of aggregate outcomes, and use these models and other empirical
evidence to address prominent issues of macroeconomic performance. The focus is on economic models
that may be imperfect, still useful descriptions of economic reality. In understanding and interpreting these
models, only basic analytical tools are used.

Learning Outcomes: 

Students understand the motivation for, the mechanics and significance of the relevant concepts taught.


A total of fifteen lectures will be given during the term, each of them lasting for 120 minutes. The course
material primarily comes from in‐class lectures and discussions. The lectures describe important empirical
regularities in order to help identify key questions, guide model‐building efforts, evaluate the usefulness of
economic models, and provide perspective on major economic developments. Students are expected to
come to class prepared to discuss the dayʹs topic and encouraged to participate in class discussions. Besides
regular class attendance, students are also assumed to carry out a fair amount of work on your own,
including completing readings and problem sets as assigned. Seminar sessions are directed at reviewing
solutions to problem sets and other class material.
The course grade (G) is determined by the final exam (F), the midterm exam (M), the homework
assignments (H) and class participation (C) by the following formula, G = max{0.5F+0.25M+0.2H+0.05C,
0.6F+0.15M+0.2H+0.05C}. The final exam is comprehensive, covering all material in class meetings and
required readings. Class attendance is mandatory.
The text used in the course is Mankiw, Macroeconomics, 5th Edition, Worth Publisher. Occasionally, other
readings might be added.
If students experience any problem with the class, they are strongly encouraged to talk to the lecturer as
early as possible, in order to address them before it becomes too late.


This is a compulsory, core class for first‐year students in the ‘Economic Policy in Global Markets’ program.

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