AØKB08024U Macroeconomics B
In particular, the course deals with questions such as: - How do various macroeconomic variables move during a "typical" business cycle? - Why is economic growth so uneven and irregular? - What roles do the stock market and the housing market play in the explanation of business cycles? - What are the causes of short-run fluctuations in unemployment? - What are the welfare costs of business cycles? - Can active monetary and fiscal policy help to reduce business fluctuations? - What is the role of foreign trade and international capital flows in explaining business cycles? - Should exchange rates be fixed or flexible? - What are the benefits and costs of a monetary union?
Students are to learn the most important stylized facts about business cycles and to acquire knowledge about theoretical dynamic models aimed at explaining these facts. In connection with this, the aim is to make students familiar with the distinction between deterministic and stochastic models. Furthermore, students are to gain an understanding of the distinction between the impulses initiating a business cycle and the propagation mechanisms that give business cycles a systematic character. Finally students are to learn how to use the models for analyzing the effects of macroeconomic stabilization policy under various assumptions regarding the exchange rate regime.
To obtain a top mark in the course students should at the end of the course be able to demonstrate full capability of using the techniques of analysis taught in the course as well as a thorough understanding of the mechanisms in the business cycle models for open and closed economies, including the ability to use relevant variants and extensions of the models in order to explain the effects of various shocks and the effects of macroeconomic stabilization policies under alternative monetary and exchange rate regimes.
- Teorihistorie baseret på kap. 27, "The Story of Macroeconomics", i Olivier Blanchard: Macroeconomics, 5th ed, Pearson International Edition.
- Peter Birch Sørensen og Hans Jørgen Whitta-Jacobsen: "Introducing Advanced Macroeconomics - Growth and Business Cycles". McGraw-Hill Education, 2nd Edition, 2010.
Følgende er pensum: Kapitlerne 13-20 samt 23-25. Undtaget er dog følgende afsnit og passager:
- Fra og med afsnittet “The welfare costs of mark-up shocks” (side 561) til boksen på side 581. Forståelsen af boksen og resten af kapitel 19 er pensum.
Følgende afsnit er kun kursorisk læsning:
- 17.3 “The Importance of nominal rigidities for the short-run trade-off between inflation and unemployment”
- 18.4 “A different perspective: real business cycle theory”.
- Class Exercises
- 7,5 ECTS
- Type of assessment
- Written examination, 3 hours under invigilation3 hours writtten assignment taking place at Peter Bangs Vej 36.
- Exam registration requirements
- Two written assingments must be approved
- Without aids
- Marking scale
- 7-point grading scale
- Censorship form
- External censorship
20 % external censurship
- Exam period
- Will be published at the begining of the semester
- Same as ordinary. But if only a few students have registered for the re-exam, the exam might change to an oral exams with a synopsis to be handed in. This means that the examination date also will change.