Other languages of instruction: English
If the student is enrolled for the English track then classes for that subject will be taught in the same language.
Wednesday from 14:00 to 15:00 (or at any time, if the meeting has been confirmed by e-mail).
It is necessary to have confirmed the appointment with the teacher by mail (firstname.lastname@example.org)
For individuals involved in business, it is crucial to have good knowledge of the macroeconomic environment in which they develop their job. While there are no foolproof guidelines in decision making, it is important to have the best information about the international economic situation.
It is advisable, but not necessary, to have studied Macroeconomics 1.
The purpose of this subject is to make the students familiar with the manner in which open economies operate. Using the specific tools of economic theory, the course covers some of the most important macroeconomic models. The different topics are approached in the same way in which economists typically analyse the economic facts and policies.
By competences we mean the personal abilities that lead to excellent performance of the work carried out in a work position in a specific organization. The different competences manifest themselves in normal daily activities, allowing the tasks to be carried out successfully. Given that we are not talking of theoretical knowledge but personal skills, competences are therefore something complementary to professional theory and knowledge. Typically, competences demand an active and consistent effort from the individuals.
- 10 - To identify long-term economic growth factors and understand the impact of globalisation.
- 21 - To be familiar with the main theories in the fields of microeconomics and macroeconomics.
- 23 - To be familiar with and know how to use microeconomic and macroeconomic analysis terminology.
- 24 - To be able to carry out a financial, social and historical analysis of the environment in which a company operates.
- 27 - To be able to read and understand literature on economic and business issues.
- 31 - To develop the ability to identify and interpret numerical data.
- 32 - To acquire problem solving skills based on quantitative and qualitative information.
- 34 - To develop the ability to predict situations and anticipate events, as well as be able to recognise and interpret an economic situation within a specific context.
- 45 - To be able to work with academic papers.
- 46 - To acquire the ability to understand and participate in conferences and lectures in an academic context.
- 50 - To acquire the ability to relate concepts, analyse and synthesise.
- 52 - To develop interpersonal skills and the ability to work as part of a team.
- 53 - To acquire the skills necessary to learn autonomously.
- 54 - To be able to express one’s ideas and formulate arguments in a logical and coherent way, both verbally and in writing.
- 56 - To be able to create arguments which are conducive to critical and self-critical thinking.
- 57 - To acquire skills which favour reading comprehension.
- 58 - To be able to develop self-assessment exercises.
- 62 - To acquire mechanisms that facilitate the adoption of ethical commitments.
- 64 - To be able to plan and organise one's work.
- 67 - To be able to express oneself in other languages.
- 68 - To develop mechanisms that encourage sensitivity towards social welfare issues.
The competences pursued in this course include:
- Capacity to summarize and analyse information. In business, individuals must be able to analyse ideas, theories, models and problems, in order to disclose the main findings and arguments behind the available information, which is often complex or too widespread. Similarly, students should learn to summarize the information according to pre-established goals and criteria.
- Skills in time management. Economic analysis teaches us how important it is to manage scarce resources correctly. In particular, there is usually a shortage of time that must be distributed to different activities depending on a ranking of priorities. In order to succeed in the time allocation process, it is crucial not to confuse important issues with other tasks demanding an urgent solution.
- Familiarity with data and information management. The ability to identify the most relevant issues, while leaving aside meaningless information, is important. Individuals should learn to properly use information in order to make good decisions aimed at achieving the goals and targets previously proposed.
- Communication skills. The success of a particular endeavour may depend on the effective way (clearness, accuracy, precision, etc.) in which the information is expressed. It is also desirable to be familiar with the attitudes that are correct when discussing: elegance, attention, respect, use of congruent arguments, etc.
Part I. Further Issues of Political Economy
Chapter 1. Macroeconomic Policy Debates
1.1. Review of some macroeconomic concepts.
1.2. Stabilization policies.
1.3. Discretionary policy versus policy by rules.
1.4. The rational expectations and further theoretical developments.
Chapter 2. Economic Recessions and Persistent Unemployment
2.1. Prices and wages setting in the imperfect competition model.
2.2. Search theory and the efficiency wage theories.
2.3. Imperfect competition model and and balance of unemplyment rates (Nairu).
2.4. Histeresis, persistency and supply-side policies.
Part II. International Trade and the Open Economy
Chapter 3. Introduction to International Economics
3.1. The concept of comparative advantage.
3.2. International trade and capital flows. The balance of payments.
3.3. Foreign exchange markets, exchange rates and net exports.
3.4. The case for free trade and economic efficiency.
3.5. Budget deficit and debt sustainability.
Chapter 4. International Trade and Economic Development
4.1. Natural resources, growth and inequality.
4.2. Population and sustainable growth.
4.3. International policies and income distribution.
4.4. Reasons for an optimistic overview.
Chapter 5. The AD-AS Model in the Open Economy
5.1. Net exports and the IS-LM model.
5.2. Introduction to the balance of payments (BP) function.
5.3. International flows of capital and the Mundell-Fleming model.
5.4. Monetary policy with fixed and flexible exchange rates.
5.5. Fiscal policy with fixed and flexible exchange rates.
Teaching and learning activities
As with any other discipline belonging to the field of economic theory, the study of Macroeconomics must be done gradually. In the learning process, comprehension and capacity of analysis are more important than memory. Experience leads us to conclude that students who work on a regular basis get the best results. In accordance with that, the evaluation method adopted here requires attending lectures and encourages continuous study.
Evaluation systems and criteria
The final mark is composed by two elements:
● On-going evaluation: 40% of the global final mark.
● Final examination: 60% of the global final mark.
The type questions to be confronted in the exams, as well as the functioning of the on-going evaluation, will be explained in the lectures
Bibliography and resources
- Gregory Mankiw (2015), 9th Edition: «Macroeconomics». Worth Publishers, New York. (ISBN-13: 978-1429240024). There is a Spanish version of a previous edition: (2014), 8ª ed.: «Macroeconomía». Antoni Bosch, Barcelona.
- Wendy Carlin and David Soskice (2014): “Macroeconomics: Institutions, Instability, and the Financial System”. 1st Edition: Oxford University Press (December). ISBN-13: 978-0199655793
- Paul R. Krugman, Maurice Obstfeld and Marc Melitz (2011), 9th Ed.: «International Economics: Theory and Policy». Pearson Addison-Wesley, Boston. (ISBN-13: 978-0132146654). There is a Spanish version of a previous edition: (2001), 5th ed.: «Economía internacional: teoría y política». Addison Wesley – Pearson, Madrid.
- Rudiger Dornbusch; Stanley Fisher and Richard Startz (2010), 11th Edition: «Macroeconomics». McGraw-Hill/Irwin. (ISBN-13: 978-0073375922). There is a Spanish version of a previous edition: (2004), «Macroeconomía». McGraw-Hill Interamericana.
- Julian L. Simon (1998), «The Ultimate Resource 2». Princeton University Press; Revised Edition. Princeton, New Jersey. (ISBN-13: 978-0691003818).