Macroeconomics and Economic Policy

Full course description

This course elaborates the macroeconomic topics and theories that have been discussed in the first year. The central question always concerns the coordination between the goods market, the labour market and financial markets, both in a closed and open economy framework. Coordination failures play a central role in explaining macroeconomic fluctuations, providing roles for fiscal and monetary policy.
The courses develops a new Keynesian view of macroeconomics, developing theories and models for the short- and medium-run. Using recent OECD Economic Outlooks, macroeconomic theory is applied to a wide variety of recent macroeconomic problems and policy dilemmas.