Course: Macroeconomics II

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Course title Macroeconomics II
Course code KEK/MK2-E
Organizational form of instruction Lecture + Lesson
Level of course Master
Year of study not specified
Semester Summer
Number of ECTS credits 6
Language of instruction English
Status of course unspecified
Form of instruction Face-to-face
Work placements Course does not contain work placement
Recommended optional programme components None
Course availability The course is available to visiting students
Lecturer(s)
  • Laboutková Šárka, prof. Ing. Ph.D.
Course content
Lectures: 1. Measuring the Economic Fundamentals. Determination of Equilibrium Output in a Closed Economy. Keynes's Consumption Theory, a Model of Intertemporal Choice, Life Cycle Theory and the Theory of Permanent Income 2. Determination of Equilibrium of Production in Model IS-LM. 3. Model IS - LM. Fiscal and Monetary Policy. 4. Analysis of Aggregate Demand: Keynesian AD Curve, the Classic AD Curve. 5. Analysis of aggregate supply: the Keynesian concept, neoclassical synthesis, classical and monetarist approach. 6. Government sector and the state budget, curve BS and ways of satisfying budget deficits, public debt. 7. The monetary policy, inflation targeting, quantitative easing. 8. Effects of Fiscal and Monetary policy in IS-LM and AS-AD Model. 9. Determination of Equilibrium Output in Open Economy. IS-LM-BP Model. 10. Determination of Exchange Rate. Mundell-Fleming Model, Fiscal and Monetary Policy. 11. Labour Market and Unemployment. 12. Inflation: Phillips Curves, SP and DG Curves. 13. Long-run Economic Growth. Seminars: 1. Measuring the Performance of the Economy, the Development of the Price Level Measurement, Determination of Equilibrium Output in a Closed Economy, Consumption Function, Savings, Determinants of Equilibrium of the Economy. 2. Goods Market and the IS Curve, Money Market and the LM Curve, the Current Equilibrium in the Goods Market and the Money Market: the IS-LM Model. 3. Fiscal Policy and its Effectiveness in the IS-LM Model, Monetary Policy and its Effectiveness in the IS-LM Model, the Criteria for Selection of Fiscal and Monetary Policies and their Combinations. 4. Keynesian Aggregate Demand Curve, Past Investments, Liquidity Trap, the Pigou Effect, the Quantity Theory of Money. 5. Derivation of Short-AS Production Function: Basic Situation, an Extreme Case, Neoclassical Synthesis, Derivation of the Classical AS, Friedman and Lucas Concept of AS. 6. Effects of Fiscal and Monetary Policies in the Extreme and Basic Keynesian Case, in the Classical Concept, the Concept of School Monetarists and Rational Expectations. 7. Government Sector and the State Budget, Curve BS and Ways of Satisfying Budget Deficits, Public Debt. The Monetary Policy, Inflation Targeting, Quantitative Easing. 8. Net Export and Equilibrium on the Final Product Market in an Open Economy, Balance of Payments, BP Curve and Equilibrium Output. 9. Mundell-Fleming Model, Fiscal and Monetary Policy, Perfect Capital Mobility, Fixed and Flexible Exchange Rate, determination of Exchange Rate in the Short- and Long-run, Depreciation and Current Account, J-curve, Marshall-Lerner Condition. 10. Aggregate Demand for Labour and its Determinants, Aggregate Supply of Labour, Labour Market Equilibrium, Classical View on the Labour Market and its Macroeconomic Context, Labour Market in an Keynesians Economic Regime, nominal wage rigidities and their macroeconomic context. 11. Original Phillips Curve, its later Modification, expectation-augmented Phillips Curve and Aggregate Supply Curve, Rational Expectations. 12. Rate of Inflation and Growth Rate of Real Output, Growht Rate of Nominal Output and Rate of Inflation, Determination of Inflation Rate and Growth rate of Real Output: Adjustments Path. Supply Inflation (Cost-push inflation), Anti-inflation policies. 13. Production Function, Solow Growth Model, Endogenous Growth Models.

Learning activities and teaching methods
Monological explanation (lecture, presentation,briefing)
  • Class attendance - 56 hours per semester
Learning outcomes
The subject Macroeconomics II is addressed to students of the Master degree. The target of the course is to enhance the theoretical knowledge from the Bachelor course. The economic theory of major macroeconomic schools is introduced to the students with emphasize on the development of their macroeconomic contemplation.
Students obtain knowledge in given course in accordance with requirements and course programme.
Prerequisites
Students obtain knowledge in given course in accordance with requirements and course programme.

Assessment methods and criteria
Combined examination

oral exam
Recommended literature
  • BARRO, R. Macroeconomics, Jon Wiley & Sons Inc..
  • BLANCHARD, O. Macroeconomics (2nd ed.).Prentice Hall International. 2000..
  • BURDA, M. Wyplosz: Macroeconomics, a European Text. Oxford University Press..
  • DORNBUSCH, R. FISCHER, S. Macroeconomics, McGraw-Hill Book Company Inc..
  • GÄRTNER, M. Macroeconomics. Ashford Colour Press. 2006.Second Edition..
  • ROMER, D. Advanced Macroeconomics. 3rd ed. New York. McGraw-Hill. Irwin 2006..


Study plans that include the course
Faculty Study plan (Version) Category of Branch/Specialization Recommended year of study Recommended semester