Course content

The course covers models and methods of macroeconomic problems, with particular emphasis on the analysis of policy and business cycles.

Learning outcome

Knowledge

You learn

• how public deficits affect aggregate demand (Ricardian equivalence)to analyze sustainability of public deficit
• show pension systems affect savings and growth (overlapping generations model)
• how private and public savings decisions affect the foreign economy of a country (the trade account and the current account)
• the relationship between monetary policy, inflation and business cycleshow expectations affect the macroeconomy
• how the financial markets and debt accumulation affect the business cycle (background and effects of financial crises)

Skills

You should be able to

• explain central theories and models of public deficits, macroeconomic consequences of decisions on savings and dynamic effects of monetary policy
• analyze a wide spectrum of macroeconomic problems by the use of suitable models

General competence

You should be able to

• read and understand reports and research articles dealing with issues discussed in the course
• use the content of the course in your own academic work like your master

Learning methods and activities

4 hours of lectures every week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term. The term papers can be written as a joint project. The course is an optional master's course, and is not taught every autumn semester. Check www.ntnu.edu/econ. Students enrolled in ISØ's master programs can take the course any semester.

Specific conditions

Recommended previous knowledge

Compulsory courses in Master of Science in Economics

Required previous knowledge

None.

Course materials

Announced at the beginning of the term.

Credit reductions