Advanced Macroeconomics


The course is one of core courses in the Master Program in Economics.  We focus on formal analysis of theoretical models. The main aim is to provide students with knowledge of core macroeconomic theory at the graduate level. The students learn theoretical concepts and analytical techniques  to understand complex contemporary macroeconomic problems.

The course studies models of short-, medium- and long-run macroeconomic dynamics. We use mathematical tools for modern dynamic macroeconomics and examples of their application to business cycles, fiscal policy, growth and unemployment.

The course is organized in three key parts. The first part deals with microeconomic foundations of macroeconomics and introduces rational expectations. The second part analyses short-term fluctuations in macroeconomic performance and how macroeconomic policy may be used to address these. Specifically, it provides rigorous treatment of the Real Business Cycle theory and monetary/fiscal policy as regulatory instruments. The third part deals with economic growth as a fundamental determinant of long-term macroeconomic performance.


  • A good mathematical background (especially on optimization methods)
  • Theoritical background on intermediate macro



Snowdon and Vane, Modern Macroeconomics – Chapters 1, 2, 3, 4, 5, 6, and 7.

* to analyze development of modern macroeconomics

book cover


Heijdra, Foundations of Modern Macroeconomics – Chapters 1, 2, 3, 4, and 5.

* to gain different perpectives on intermediate macroeconomics


Macroeconomic Theory by [Jean-Pascal Benassy]


Benassy, Macroeconomic Theory  – Chapters 1, 2, 3, 4, and 5.

* For quick panorama of main models and building blocks of modern macroeconomics.



Course Plan

1. Introduction to General Equilibrium Model

Lecture Note

2. Review of AD-AS Model

Lecture Note

3. Open Economy

Lecture Note

4. Dynamics in AD-AS Model

Lecture Note