The objective of the course is to train students to use macroeconomic models to understand real-world economic phenomena. The students will learn how to interpret macroeconomic data and understand the implications of economic policies. The course will put emphasis on major issues related to economic growth, the causes of economic fluctuations, and the effectiveness of economic policy. We will investigate the link between financial openness and economic growth, and we will explain why emerging countries experience capital outflows. We will study the impact of the exchange rate regime on the effectiveness of fiscal policy, we will rationalise the increase of current account deficits in Europe after the beginning of the nineties, and we will analyse the cause(s) of cross-country differences in hours worked.
The module requires basic knowledge of basic calculus, logical thinking and problem-solving skills.