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Macroeconomics I

Course information:

Lecturer:                     Prof. Dr. Bernd Hayo
Time and place:           see MARVIN

Learning objectives:

- Introduction to key issues and phenomena in macroeconomics.
- Presentation of explanatory frameworks and approaches to problem-solving.
- Instruction in key theoretical concepts, economic policy principles, and basic analytical methods
- Discussion of the limitations of the theories presented
- Many professional fields in economic practice require a foundational understanding of macroeconomic interrelationships

Useful prior knowledge (not a prerequisite for participation):

- Introduction to Economics
- Basic Mathematics

Detailed course content 

I. The Macroeconomy: Income, Money and Employment
1. Introduction          
1.1 Macroeconomics as a science        
1.2 Describing the macroeconomy      
1.2.1 National accounts          
1.2.2 Production, expenditure and income perspective      
1.2.3 National accounts, welfare and prosperity            
1.3 Price measurement

2. National Income  
2.1 The creation of income    
2.2 The distribution of income            
2.3 Economic inequality          
2.4 Income expenditure          
2.5 Long-term equilibria  
       
3. Money and Inflation        
-  Guest lecture
- Additions
3.1 The quantity equation and the demand for money            
3.2 Money, price and inflation            
3.3 Interest rate and money demand  
3.4 Costs of inflation and hyperinflation        
3.5 Money supply        

II. Long-Term Analysis: Economic Growth
5. Pros and Cons of Economic Growth      
6. Growth Models    
6.1 The Solow model  
6.2 The ‘golden rule’ of capital accumulation  
6.3 Population growth            
6.4 Technological progress      
6.5 Empirical evidence            

III. Short-Term Analysis: Business Cycles
7. Business Cycle Theory and Empirics    
7.1 Business cycle versus economic growth    
7.2 Aggregate demand and supply      
7.3 Stabilisation policy

Recommended textbook literature:

Core text:
- Mankiw, N.G. (2012), Macroeconomics, 8th ed., New York: Worth Publishers.

Other recommended textbooks:
- Blanchard, O. and Illing, G. (latest edition), Macroeconomics, Munich: Pearson Education.
- Dornbusch, R., Fischer, S. and Startz, R. (latest edition), Macroeconomics, Munich: Oldenbourg.
- Gärtner, M. (latest edition), Macroeconomics, Harlow: Pearson Education.

Further references can be found in the respective chapters.