Overview

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.