The key learning objective is to provide students with basic understanding of the key determinants of economic developments (in particular business cycles). We therefore commence with developing understanding about terminology, concepts and important economic relationships. Based on this, we discuss stylized models used to describe economic activity over the short- and medium-run as well as economic policy options. 

VC Macroeconomics consists of two parts:The lectures develop basic knowledge about and understanding of important macroeconomic relationships – based on the underlying textbook.The practice sessions – taking place in several small groups that all discuss identical material – deepen the knowledge obtained in the lectures by discussing both pencil and paper as well as computer exercises.Furthermore, we offer a tutorial (course no. 607.245). The tutorial provides a further opportunity to discuss the material presented in the lectures and the practice sessions and is thus very helpful to support the work on and understanding of the exercise sheets (in particular also with regard to the mathematical foundations).

A Tour of the WorldA Tour of the Book: Output, Unemployment and InflationThe Goods MarketFinancial Markets IGoods and Financial Markets: The IS-LM ModelFinancial Markets II: The Extended IS-LM ModelThe Labor MarketThe Phillips CurveThe IS-LM-PC ModelThe contents discussed may go beyond the material contained in the book indicated; additional material may be provided and possibly deviate from the book. It is, of course, also possible that not all chapters indicated will be discussed. The other way around, also more chapters than indicated at the outset may be discussed.  Clearly, only the chapters and material actually discussed during the semester are relevant for the exam.Preparing for the lectures by, e.g., reading the relevant chapters of the book prior to the corresponding teaching units has proven very effective for a positive and successful learning experience.Please note: The textbook, to be precise subsequent chapters, forms the basis of International Macroeconomics VC.

VO StEOP – Introduction to EconomicsVO Economic PolicyVC MicroeconomicsAdditionally, knowledge of the material covered in Methodology I: Mathematics and/or Methodology II: Statistics is expected.The mathematics knowledge covered in Methodology I is, e.g., contained in:        Knut Sydsaeter, Peter J. Hammond, Arne Strom, Andrés Carvajal (2021) [or earlier editions], Essential Mathematics for Economic Analysis, Pearson.The statistics knowledge covered in Methodology II is not directly attributable one-to-one to one specific book, but a good and relevant introduction with a large overlap is:          Mario F. Triola (2018) [or earlier editions], Essentials of Statistics, Pearson.Please see also the file Recommended Sequence of Economics Courses in the “Slides, Further Reading and Interesting Material” section of the Moodle course.

IBEc Curriculum 24W:Methodology 1: Mathematics I and IIMethodology 2: Statistics I

The lectures are based on the macroeconomics book of Olivier Blanchard, that is available in several very closely related versions in the library:Olivier Blanchard (2017), Macroeconomics, Global Edition, 7th ed, Pearson. [13 copies]Olivier Blanchard (2021), Macroeconomics, Global Edition, 8th ed, Pearson. [7 copies]Olivier Blanchard, Alessia Amighini, Francesco Giavazzi (2017), Macroeconomics: A European Perspective, 3rd ed, Pearson. [5 copies]The books can also be ordered online from Pearson Education.Our slides contain original graphs of the book made available by the publisher and therefore, for copyright reasons, we are not allowed to share the slides with you (at least not a large part).

The practice sessions start in the week following the first lecture.For the practice sessions you will have to solve the four exercises of the corresponding exercise sheet as of the first session. Select (tick) the exercises you actually did solve in the checklist in the Campus System and upload the solutions to Moodle by 10:00 on the Tuesday of/before the practice session.During the practice sessions you will be asked – chosen randomly – to present your solution for any of the exercises you ticked. You are expected to give a short and succinct presentation of your solutions.A necessary condition for successfully completing the practice sessions is to tick at least 60% of the exercises (= 24 out of 40). Every ticked exercise is worth 1 point – the maximum number of points achievable for ticked exercises is therefore 40 points. You need at least 20 points from the number of selected/ticked exercises, taking into account bonus and malus points that you may have collected over the semester.If it turns out that you are absent (without excuse) or haven’t prepared the exercise, you may be penalized with up to 5 minus points. In addition, you will lose the point for the exercise you ticked in the list (or all if you are absent). Serious flaws in the solutions presented will lead to deductions. You may, however, also be awarded bonus points for particularly good explanations of exercises and contributions (to the discussions).Final exam: The final exam consists of four questions:Exercise 1 [10 points]: 20 true/false statements worth 0.5 points eachExercises 2–4 [30 points]: Exercises and questions similar in spirit and complexity to the weekly exercisesMinimum of 20 points required for a positive gradeDuration: 120 minutesClosed-book exam (= no documents allowed); you may use a non-programmable calculator (and bringing a ruler is also a good idea)Date: One or two weeks after the last practice session (exact date: t.b.a.)Resit at the end of February 2025You have to sign up for the final exam (and/or resit) in the Campus System.There will, perhaps, also be bonus quizzes during the lectures that will count towards the overall grade.

The exam is based on:the actual contents discussed in the lectures (the list above is, therefore, purely indicative)the material discussed in the practice sessions, both related to the exercise sheets and to potentially discussed further issues.

You must successfully complete (i.e. achieve at least 50% of the attainable points of) each part, with both parts each contributing 50% to the overall grade; this means that taking the final exam is conditional upon completing the practice sessions successfully.The overall final grade is – in case both parts are completed successfully – the arithmetic mean of the two sub-grades, rounded in your favour.If one of the two parts is not completed successfully Macroeconomics VC needs to be repeated altogether. [This is required by law and not for us to decide.]