Macroeconomics 2
Module: Anàlisi Econòmica
Matter: Macroeconomics
Main language of instruction: Spanish
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.
Head instructor
Dr. Pedro GARCÍA - pgarcia@uic.es
Office hours
Thursday, from 12:00 to 13:30 (or at any time, if the meeting has been confirmed by e-mail).
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.
The competences pursued in this course include:
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.
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.
● On-going evaluation: 20% of the global final mark.
● Partial examination: (up to) 20% of the global final mark.
● Final examination: (at least) 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. At the end of this page there is a pdf file describing the evaluation system in detail.
Bibliographical References:
- 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).