Macroeconomics 2

• 26 hrs lectures
• 26 hrs exercises

After finishing the course students should be able to understand theoretical basis and principles of economics, in context of contemporary problems.

The main objective of the course is enlargement of macroeconomic knowledge and intensifying of students' abilities in understanding and solving of actual economics problems.

The knowledge of Macroeconomics, Microeconomics and Econometrics is expected.

1. Mainstream of the economics theory.
2. The theory of money and the money market, the quantity theory of money, the theory of neutrality of money.
3. Unconventional instruments of monetary policy, quantitative easing
4. The theory of interest, savings, consumption, investment and investment multiplier.
5. Market for loanable funds in a closed and an open economy.
6. The theory of international trade, balance of payment, external balance of state and exchange rate mechanism.
7. Net export function, Marshall-Lerner condition
8. Models of economic equilibrium, general markets equilibrium, model IS-LM for a small closed economy.
9. Changes in the IS-LM model, complete Keynesian model
10. Mundell-Fleming model, IS-LM (IS-LM-BP) in a small open economy.
11. The theory of business cycles, real and monetary cycles, economic growth and the models of economic growth (Solow's Growth Model, Cobb-Douglas Production Function, Endogenous Growth Theory).
12. The balance of the labour market, the natural rate of unemployment, Phillips curve theories, human capital theory.
13. Economic policy and economic policy failures, economy in speaking to political issues and sociological issues.

1. Introduction to the course, revision of basic macroeconomic knowledge.
2. The quantity theory of money, money market.
3. Transmission mechanism.
4. Theories of savings, consumption and investments, Keynesian cross.
5. Market for loanable funds in a closed and open economy.
6. Balance of payments, external balance of state and exchange rates.
7. Real exchange rate, net export function, Marshall-Lerner condition.
8. Model IS-LM in the three-sector economy.
9. Imbalance in the IS-LM model in a three-sector economy, non-price factors affecting the IS-LM model, the principle of derivation of the AD curve from IS-LM model.
10. IS-LM model for a small open economy, model IS-LM-BP.
11. Models of economic growth.
12. Labour market.
13. Credit written work.

Student gets credit if he receives at least 15 points out of 30 possible points from seminars and fulfils the criteria of attendance at the seminars. Assessment from the seminars is a part of the final evaluation of the subject. The maximum of 25 points will be awarded for test , from which a student must obtain at least 12 points. If a student does not receive enough points from the test, he / she can repeat the test in a one term for correction set by the teacher. 2 points are for 100 % attendance at the seminars and the maximum of 3 points for active participation at the seminars, which is in a form of active involvement in solving tasks and exercises in front of the students’ group or on the blackboard.

The requirements for the final exam are the knowledge of the subject and the obtained credit. The form of the exam is written exam. The maximum number of possible points of the written examination is 70, the minimum is 35 points. In the overall assessment, the points of the seminars and examination are added.

The scale of the resulting classification:
(student may gain from exercise 30 points and max.70 points of the final exam, a total of 100 points for the subject)
A: 90-100 points
B: 80-89 points
C: 70-79 points
D: 60-69 points
E: 50-59 points
F: less than 50 points

The course contains of two-hour lectures that explain basic principles, problems and methodology of the discipline, and one-hour practical seminar. The practical exercises promote the practical knowledge of the subject presented in the lectures and also are concerned on handling numerical tasks.

Control of students' attendance and results is fully in competence of the teacher. The minimum attendance is 6 seminars.