Economic Policy


The course is designed to students with provide a comprehensive understanding of the many facets of economic policymaking, to strengthen their analytical skills, and to enable them to formulate economic policy recommendations and advice.

  • This course focuses on macroeconomic policy problems in the short-run.
  • Macroeconomic theory is covered to analyze these macroeconomic problems.
  • The course introduce policy implementations to solve macroeconomic problems.
  • We study the collection and descriptive analysis of macroeconomic data.
  • We learn to employ empirical analysis to manage macroeconomic research.
  • Students experience how to conduct economic policy analysis.

  You can find course syllabus here.


  • There are several books that I can recommend.
  • We use some chapters from each textbook.
  • You can find related chapters in the course plan.

Main Textbook:



F. Mishkin, Macroeconomics: Policy and Practice, 2nd Edition,Pearson.



Complementary Textbooks:



G. Mankiw, Macroeconomics, 8th Ed., Palgrave Macmillian





O. Blanchard, Macroeconomics, 8th Ed., Pearson



Course Plan   

Week 1: Introduction to Economic Policy: Economic Analysis  

Lecture Note  

Mishkin, Macroeconomics -Chapter 1 and 2


Economic Models: Simulations of Reality

Micro and Macro: The Economic Divide

Econometrics: Making Theory Count

Week 2: Interpretation of Macroeconomic Data 

Lecture Note   

Data Sources

Electronic Data Deivery System -TCMB

Turkish Statistical Institute

IMF Databank

World Bank Open Data

Week 3: Macroeconomic Basics 

Lecture Note      

Mishkin, Macroeconomics – Chapter 3,4,5


What is Money?

Inflation: Prices on the Rise

Week 4: Long Run in the Economy: Economic Growth


Mishkin, Chapters 6-7


Acemoğlu & Üçer – High-Quality versus Low-Quality Growth in Turkey – Causes and Consequences


Daron Acemoglu – Inclusive institutions, democracy and the key drivers of economic growth

Week 5 : Short Run in the Economy:  Business Cycles  

Lecture Note        

Mishkin, Chapter 8


Business Cycles

What is Keynesian Economics

Output Gap

Recession :  When Bad Times Prevail

Week 6: Back to Macroeconomic Theory


Mankiw, Chapters 10-11

Lecture 7 : Analysis of Business Cycles I : The Demand Side of the Economy 


Mishkin, Chapters 9-10-11

Lecture 8 : Analysis of Business Cycles II : The Supply Side of the Economy 


Mishkin, Chapter 11.

Mankiw, Chapter 13.


Exchange Rate Pass Through

Türkiye’nin Enflasyonu

Türkiye’nin Enflasyon Tercihleri

Enflasyon Raporu

Lecture 9 : Aggregate Demand – Aggregate Supply Model : Policy Analysis 

Lecture Note     

Review Questions I

Review Questions II

Mishkin – Chapter 12 and 13

Lecture 10 : Monetary Policy 

Lecture Note

Merkez Bankacılığı ve Para Politikası


Inflation Targeting : Holding the Line

Monetary Policy: Stabilizing Prices and Output

Lecture 11 : Macroeconomic Policy 

Lecture Note

Review Questions


Current Account Deficits: Is There a Problem?

Fiscal Policy: Taking and Giving Away

Capital Accounts: Liberalize or Not?

Lecture 12: The Role of Expectations in Macroeconomic Policy – Modern Business Cycle Theory

The Role of Expectations

Modern Business Cycle Theory