ØSS113 Macroeconomics II

Contents and structure

The course is based on BØA118 Macroeconomics I and the learning from this course is an integral part. The course aims to explain some theories that were not treated in BØA118. Furthermore, the course will emphasize bringing up current topics and reflecting the current macroeconomic news. Thus, the course may be somewhat different from one year to another.

Key themes are:

Various economic models that provide perspectives on macroeconomic events.

Learning Outcome

Knowledge:

The course aims for the student to know alternative theories that were not addressed in BØA118 such as:

• Rational consumers and Ricardian equivalence
• The interaction between real and nominell macroeconomy
• Various parities (Interest rate, purchasing power, real interest rate)
• Exchange rates in the short and long run
• Different exchange rate systems
• Stabilization policy subject to a monetary policy rule
• IS-PC-MP model
• Currency Union
• Financial crises and bubble theory
• Economic policy in a game between rational actors and politicians (time inconsistency, "Inflation bias")
• Problems related to the stabilization of government debt
• Norway as an oil-dependent economy
• Norwegian economic policy

Skills:

• On completion of the course the students should be able to interpret and understand economic news and events. Explain alternative ways of seeing things. Explain the logic of economic models and their reflect on their validity (assumptions). An increased degree of formal presentation will be emphasized.

Competence:

• Make use of abstract models
• Master basic concepts and analysis
• Reflect critically on economic events

Entry requirements

None

Recommended previous knowledge

• BØA203 Microeconomics I
• BØA118 Macroeconomics I
• BØA111 Mathematics

Teaching methods

Lectures, presentations and problem solutions.

Compulsory learning activities

Students have to pass 3 assignments to be allowed to take the exam.

Assessment

Written school exam, 4 hours. The time and place for the exam will be announced on Studentweb. Grading scale A-F, where F means the student failed.

Examination support material

All calculators are allowed, with the following exceptions/limitations

- the calculator can not communicate

- the calculator can not handle symbolic mathematical expressions

- the calculator will not be connected to electricity

- the calculator can not make noise in the exam facilities

More about examination support material