Advanced Macroeconomics

DESCRIPTION: 
Expectations and macroeconomic policy in the short and the long run. The relationship between unemployment and inflation. Consumption and investment theory. Balance of payments, exchange rates and macroeconomic analysis for an open economy.

RATIONALE: 
This course is the sequel to Macroeconomic Theory and Policy. Its purpose is to provide students majoring in economics the opportunity to cover more advanced concepts and issues not addressed during the first semester. Specifically, students have the opportunity to study in depth the effectiveness of fiscal and monetary policy in a closed as well as open economy framework and under different exchange rate systems. For prospective graduate students in economics, this course constitutes a necessary and fundamental step to an overall economics education.

LEARNING OUTCOMES: 
As a result of taking this course, the student should be able to:
1. Analyze and discuss fiscal and monetary policy and the role of expectations in a closed economy.
2. Analyze and evaluate the theoretical foundations of consumption and investment decisions and their impact on the effectiveness of macroeconomic policy.
3. Explain the causes of balance of payments imbalances and their effect on exchange rates.
4. Analyze and discuss the effectiveness of macroeconomic policy in an open economy with fixed or floating exchange rates and different degrees of capital mobility.

METHOD OF TEACHING AND LEARNING: 
In congruence with the learning and teaching strategy of the college, the following tools are used: 
- Classes will consist of lectures, solution of homework assignments and class discussions of recent articles in economic journals
- Office Hours: Students are encouraged to make full use of the office hours of their instructor, where they can ask questions and go over lecture material.
- Use of a Blackboard site, where instructors post lecture notes, assignment instructions, timely announcements, as well as additional resources.