The course focuses on macro-level social phenomena. Students will deepen their economic knowledge, exploring the questions of economic growth, development, and the interplay between economic factors, institutions, and social reality. The course covers concepts such as national income accounting, economic indicators, fiscal and monetary policies, and open economy, while also engaging with questions of measurement, well-being, and globalization. The students will master foundational macroeconomic concepts and examine basic macroeconomic problems, appreciating how economic factors mesh with political and other considerations to shape society. By the end of the course, students should be equipped with the tools and frameworks necessary for developing an elementary understanding of macroeconomic phenomena.
Last update: Špecián Petr, Ing., Ph.D. (16.01.2025)
Aim of the course
By the end of this course, students will be able to:
Understand the fundamental concepts of macroeconomics, including national income accounting, economic growth, unemployment, inflation, and the role of fiscal and monetary policies in stabilizing the economy.
Grasp the interconnections between microeconomic foundations and macroeconomic phenomena, with a focus on the role of institutions and organizations in shaping economic outcomes.
Evaluate the strengths and limitations of key economic indicators, such as GDP, and explore alternative measures of well-being and progress.
Gain basic orientation in the causes and consequences of economic growth, development, and structural change, and grasp the challenges and opportunities of globalization and economic integration.
Apply elementary macroeconomic reasoning to real-world issues and policy debates, while also considering the philosophical and political dimensions of economic questions.
Last update: Špecián Petr, Ing., Ph.D. (19.06.2024)
Course completion requirements
Midterm Exam (30%): A combination of multiple choice, short answer, and analytical problem-solving questions.
Final Exam (40%): A combination of multiple choice, short answer, and analytical problem-solving questions.
Seminar Participation (10%): Active contribution to seminar discussions, including asking questions, offering insights, and responding to peers' comments.
Seminar Policy Debate and Reflection (20%): Students will participate in a team debate on policy issues and write short reflection papers, demonstrating their ability to apply macroeconomic concepts and tools to analyze real-world problems and evaluate policy trade-offs.
Last update: Špecián Petr, Ing., Ph.D. (12.06.2024)
Literature
The course is largely textbook-agnostic. Any renowned introductory macro textbook will do.
Recommended textbooks:
G. N. Mankiw: Principles of Economics / Principles of Macroeconomics (any recent edition)
CORE Economics: The Economy 2.0
Specific reading recommendations will be provided through Moodle.
Last update: Špecián Petr, Ing., Ph.D. (16.01.2025)
Syllabus
Week 1: The Macroeconomic Perspective
Economic aggregates and circular flow
GDP: measurement approaches and limitations
Alternative welfare indicators
Real vs nominal variables
Key Questions: How do we measure economic activity? What are the strengths and limitations of our measures?
Week 2: Money & Banking I: Foundations
Functions and types of money
Financial intermediation
Banking system structure
Money creation process
Key Questions: What is money? How is it created in modern economies?
Week 3: Money & Banking II: Modern Monetary System
Central banking
Money multiplier
Interest rates and credit markets
Financial innovation and digital currencies
Key Questions: How do central banks influence the monetary system? What determines credit availability?
Week 4: Inflation & Price Level
Measuring inflation
Causes and types of inflation
Quantity theory of money
Social costs of inflation
Key Questions: What causes inflation? How does it affect economic decisions?
Week 5: Labor Markets & Unemployment
Labor force concepts
Types of unemployment
The Phillips Curve debate
Inflation-unemployment tradeoff
Key Questions: What determines unemployment? How does it relate to inflation?
Week 6: Economic Growth I: Facts & Framework
Measuring growth
Sources of growth
Capital accumulation
Role of technology
Key Questions: Why do economies grow? What drives long-term prosperity?
Week 7: Economic Growth II: Development & Institutions
Productivity and living standards
Role of institutions
Growth accounting
Development challenges
Key Questions: Why are some countries rich and others poor? What role do institutions play?
Week 8: Short-Run Fluctuations
Business cycles
Aggregate demand & supply
Multiplier effects
Expectations
Key Questions: Why do economies fluctuate? How do various shocks affect output?
Week 9: Fiscal Policy
Government spending & taxation
Budget deficits and debt
Automatic stabilizers
Policy effectiveness debates
Key Questions: How can fiscal policy affect the economy? What are its limitations?
Week 10: Monetary Policy
Central bank tools
Transmission mechanisms
Policy rules vs discretion
Modern monetary debates
Key Questions: How does monetary policy work? What are its strengths and weaknesses?
Week 11: International Finance
Exchange rate systems
Balance of payments
International capital flows
Policy trilemma
Key Questions: How do international financial markets affect domestic economies?
Week 12: Contemporary Challenges
Global financial crises
Climate change economics
Digital transformation
Future of macro policy
Key Questions: What are the main challenges facing modern economies?
Last update: Špecián Petr, Ing., Ph.D. (16.01.2025)
