After successful completion of the course, students are able to...

• explain key macroeconomic variables (GDP, unemployment rate, inflation rate, etc.) as well as their interrelation
• judge the potential and effectiveness of fiscal and monetary policy, and differentiate between its short und medium-run effects
• analyze important macroeconomic questions by means of simple mathematical models
• contrast different macroeconomic models and verify their validity by comparing to empirical observations
• independently retrieve and prepare macroeconomic data provided by statistical offices

1. Introduction: Evolution of macroeconomic variables in selected countries during the last decades
2. Goods market: national income accounting, multiplier models
3. Financial markets and the IS-LM model: short-run effects of monetary and fiscal policy in a closed economy
4. Labor market, Phillips curve and the IS-LM-PC model: medium-run effects of monetary and fiscal policy in a closed economy
5. Goods and financial markets in an open economy

Introduction and analysis of macroeconomic models with algebraic and graphical means

Presentation and interpretation of statistical data

oral exam consisting of two consecutive parts:

1. written problem: analysis of a concrete macroeconomic problem by means of the introduced models
2. questions concerning variable definitions, model assumptions, practical relevance, economic intuition, and important interrelations

The lecture follows the 7th edition of the German textbook Olivier Blanchard und Gerhard Illing, Makroökonomie, Pearson Studium, 2017.
Attention: Substantial changes were made from the 7th edition compared to older editions. Therefore, older editions are not suitable to follow the lecture!

It is not necessary to buy the textbook.