Macroeconomics III

Number of credits allocated: 6 ECTS Credits

Objective of the course 

• Understanding the basic methodological tools of modern macroeconomic analysis
• Algebraic presentation of the key models of the modern Macroeconomic Theory and Policy
• Predicting and understanding the outcomes of specific macroeconomic policies
• Comparative evaluation of alternative fiscal and monetary policies

Prerequisites: Macroeconomics I.

It should be noted that this course is designed for students who have a strong background in macroeconomic theory. Also, during the lectures, there is extensive use of mathematics (both elementary and advanced). 

Course contents

The course consists of two parts. In the first part, the aim is a deeper look at the traditional macroeconomic models (AD-AS), as well as, the identification of the fundamental differences among the different schools of thought. This part considers models without microeconomic foundations. We also analyze the role of expectations in economic theory and we systematically study the implications of rational expectations for the conduct of economic policy. Then, the analysis focuses on various monetary and fiscal policy issues. The second part of the course emphasizes on the use of models which are microfounded.

Recommended reading

• Economides G. and A. Philippopoulos «Models of Macroeconomic Theory and Policy», (Publishers AUEB, 2017)
• Kalaitzidakis P. and S. Kalyvitis «Economic Growth: Theory and Policy» (Revised version, Publishers Kritiki, 2008).

Teaching methods: Lectures.

Assessment methods: Final written exam (100%) or final written exam (80%) and midterm exam (20%).

Language of instruction: Greek.