Course Information

Class Schedule: Monday, 11:30am to 12:50pm and Thursday 1:00pm to 2:20pm

This is an on-line only class. We will be using Zoom and the link for the Zoom sessions will be available to students through Brightspace.

For all courses offered in bimodal or online, it is mandatory to have a computer equipped with a camera.

Official Course Description

Foundations of macroeconomic theory. Business cycle theories. Monetary and fiscal policies in a closed economy. Neoclassical and other modern growth theories.

Additional Course Description

Macroeconomic theory is concerned with the joint evolution of aggregate variables, such as GDP, inflation, interest rates, exchange rates, employment and government deficits. There are alternative theories/approaches to explain the behavior of these variables. From a public policy making perspective, however, what matter most  is not the particular theory/paradigm followed but the fact that all these variables are determined jointly, in what we generically call general equilibrium.

This class will present a suite of general equilibrium models of increasing complexity, which will allow us to evaluate the impact of alternative macroeconomic policies on the economy, as is done in practice in national treasuries and central banks and important international institutions such as the IMF, the OECD and the World Bank.

Course Learning Outcomes

General Course Learning Outcomes

This class will help students develop their skill at analyzing macroeconomic questions in a general equilibrium setting. Students will develop an appreciation for the use of macroeconomic models to answer actual policy questions and why it is necessary to rely on a suite of different models to answer specific questions.

Specific Course Learning Outcomes

Specifically, students will learn to identify the underlying assumptions built into their models and how these assumptions can influence the results of their model simulations. Students will learn how the various markets in an economy (market for goods and services, labour market, exchange rate market, financial market) are interrelated. Finally, student will learn how to analyse policy alternatives using general equilibrium models, and how to «tell a story» with their simulation results.

Assessment Strategy