This course provides the methodological and theoretical tools to understand the behavior of the major macroeconomic variables, such as GDP, the trade balance, employment, unemployment, and inflation, and to explain past and current economic developments. We will focus on the stylized facts of business cycle fluctuations and economic growth, the determinants of unemployment and inflation. We will also discuss whether and to what extent policy can improve macroeconomic performance.

Knowledge and understanding: The course will provide the basic concepts of macroeconomics, and then study the determination of national income, the workings of the monetary system, causes and consequences of inflation and the reasons behind unemployment. We will then focus on the international flows of capital and goods and how exchange rates are determined. Finally, the course will be largely devoted to understanding the process of long-run economic growth, which determines the trend over time in income per capita around which short-run fluctuations occur. Applying knowledge and understanding: The students will be able to: fully understand the main macroeconomic variables; use the basic macroeconomics model to formulate a personal and critical judgement; understand and explain the effect of monetary and fiscal policy mix. Making judgements: We expect students to be able to autonomously understand the dynamics of the business cycle and to understand the proximate causes of the main economic phenomena, as well as the possible consequences of the most used policy interventions. Communications Skills: This course will give the students the possibility to acquire and understand major terms and concepts in order to communicate their ideas, proposals, analysis and critical reasoning in the field of macroeconomics. Learning skills: This course will contribute to develop an analytical approach to the field of economics that will be the foundation for subsequent courses. The students are also expected to develop a strong critical thinking attitude.

Introduction to macroeconomics, definition, measurement and data analysis. Production, the factors of production. The determinants of consumption and investment. The equilibrium with full employment and the effects of economic policies. Currency, the price level and inflation. The open economy, the exchange rate. Theories of unemployment. Economic growth. Economic fluctuations and price stickiness. The short-run equilibrium (with unemployment) and economic policies. The open economy in the short term and economic policies in the different regimes of the exchange rate

Mankiw, G., Macroeconomics, ninth edition, Macmillan Education Imprint

It is mandatory for the students to buy the textbook, Mankiw’s “Macroeconomics” (9th edition) Lectures and exercises based on the problem sets are an integral part of the course, this material will be available online. There will be 12 problem sets (PS), one per week, done in class using the computer. Each PS will be discussed in during the TA session. Submitting the problem sets is not mandatory. Students will be able to accumulate up to 2 bonus points solving the PS, and they will be structured in a way that even if a student misses one quiz, she can still get the 2 bonus points (more below)

All exam tests are “closed book”; The final exam is composed of 40 questions (multiple choice), similar to the ones solved in the PS. The questions focus on topics covered in class. The final grade is composed by the best 10 grades in the PS (up to 2 points) and the points of the final exam (up to 28/30 points). Conditional on passing the final exam, the PS bonus points will be added to the final grade for the exams of December / January (which can lead to a 30/30 grade). Students who score less than 18 in the full final exam, bonus points excluded, do not pass the exam. Students who pass have the option to have an oral interview after the exam (up top 2 points). During the interview the committee asks questions based on the program, including the solution of simple exercises seen in class. Following this test the final grade can change (up or down).

Interview with the lecturer, interest in the subject