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
• describe salient empirical regularities as well as modeling approaches for economic growth in the long run.

  1)   Introduction and empirical evidence of important aggregate variables (GDP, unemployment rate, inflation rate);
  2)   National accounts and the measurement of gross domestic product;
  3)   The goods market;
  4)   Money and financial markets and the role of central banks;
  5)   The IS-LM model (short-term effects of monetary and fiscal policy);
  6)   The extended IS-LM model (nominal vs. real interest rates, risky assets, banks);
  7)   Labor markets: Wages, prices and the natural rate of unemployment;
  8)   The IS-LM-PC model (short-term vs. medium-term effects of monetary and fiscal policy);
  9)   Economic growth: Stylized facts;
  10)   Economic growth: Production, Saving, and capital accumulation;
  11)   Economic growth: Technological progress;
  12)   Open economy.

Analysis of macroeconomic models using algebraic and graphical means

The course materials are available on TUWEL.

Textbook:

• Blanchard, Olivier und Gerhard Illing, Makroökonomie, 8., aktualisierte Auflage, Pearson Studium, 2021 and/or
• Olivier Blanchard, Macroeconomics, 8th edition, Prentice Hall.

Written exam