Macroeconomics and Globalization
At the end of this course the student shpuld have acquired knowledge, skills and competences that allow him to:
- Understand the behavior of macroeconomic aggregates, the role and decisions of economic agents and the effects of economic policy - monetary, fiscal and exchange rate - depending on the context and in the short to medium or long term, including issues such as competitiveness and causes, characterization and resolution of international crises;
- Know the macroeconomic aggregates and their measurement, describe the models that organize and critically analyze aggregate information and behavior, monetary, fiscal and exchange rate policy instruments and their consequences, economic cycles and long-term growth factors.
- Be able to select macroeconomic information, read economic reports / articles, make economic analysis with models, graphs and arguments based on the rationality of agents;
Duarte Miguel Machado Carneiro de Brito
Weekly - 3
Total - 42
No prior knowledge of Economics required.
The relevant literature for each topic will be indicated in the slides.
Miles, D., Scott, A. and Breedon, F., 2012, Macroeconomics: Understanding the Global Economy, Wiley
Burda, M. and Wyplosz, C., 2009, Macroeconomics: A European text, Oxford University Press
Mankiw, G., 2010, Macroeconomics, Worth Publishers
Krugman, P., Obstfeld, M. and Melitz, M., 2012, International Economics: Theory and Policy, Prentice Hall
Theoretical lessons presented by the instructor, followed by the resolution of practical exercises.
TWO ALTERNATIVE METHODS:
a) Two midterms, each accounting for 1/2 for the final evaluation; each midterm covers only the part of the material not evaluated in other midterms, although possibly involving concepts given throughout the semester. Minimum grade of 9.5 points (out of 20) is needed for approval. Dates for midterms are: to be defined
b) Final Exam, worth 100% of the final grade. Minimum grade of 9.5 points (out of 20) is needed for approval.
c) Improving the grade requires the respective exam, which grade makes the 100% of the final grade.
Optional: possibility to individually add 1 point to the final grade, if approved in the course, by: i) delivering a 2 commentary articles of one page length each (including the news/issue and commentary) or 1 with 2-3 pages. Each comment must be explicitly based upon the course material on a given subject, and should explain the model used, making possibly graphical analysis, use as much as possible real data and organize arguments in a way to present a brief (one paragraph) critical analysis and suggestion of an alternative ii ) 2 simulation exercises macroeconomic policy (using the Presidential associated with the book Game of Macroeconomics N. Gregory Mankiw, http://bcs.worthpublishers.com/mankiw7/ # 517719__524559__) successfully performed, which will be measured by lower unemployment and lower inflation. These additional homeworks, i) and ii), can be delivered during the semester until the end of the 14th week.
The measurement of economic activity: national accounting, data and concepts
Short Term Macroeconomics
- Keynesian model of yield determination: the multiplier
- IS-LM model: The goods and services market and the money market. Fiscal policy and monetary policy.
- Open Economy: international trade, capital movements, exchange rate regimes.
Macroeconomics in the Short-Medium-Long Term
- Aggregate Demand
- Short and long term aggregate supply: the labor market and unemployment
Consumption, Savings and Investment
Money: Money demand and supply
Programs where the course is taught: