FIE403 Business Cycle Analysis and Macroeconomic Policies

• Topics

  This course provides an introduction to selected parts of economic theory, quantitative methods, and empirical topics relevant for analyzing business cycles. Special emphasis is placed on monetary policy and the interaction between business cycles and financial markets. The course also discusses current issues in Norwegian and international economics.

  • Decomposition of macroeconomic time series (especially gross domestic product and industrial production) into trend growth and business cycle components.
  • Quantitative analysis of macroeconomic time series: seasonal adjustment and trend estimation.
  • Leading indicators and business cycle forecasting.
  • Monetary policy and interest rate setting.
  • Coordination between monetary and fiscal policy.
  • The interaction between financial markets and macroeconomic conditions.
  • Housing markets and the macroeconomy.
  • Labor markets and the business cycle.
  • Business cycle outlook for the Norwegian and international economy.
  • Productivity growth and economic development.
  • Sustainability of macroeconomic policies and challenges related to climate risk.

• Learning outcome

  Knowledge

  Upon completion of the course, the student can…

  • Analyze business cycles and the interactions between macroeconomic developments and financial markets.
  • Discuss how monetary policy and business cycle events affect interest rates, and financial markets.
  • Interpret business cycle indicators and macroeconomic development.
  • Understand the effect of business cycles on individual and firm behaviour.

  Skills

  Upon completion of the course, the student can…

  • Analyze business cycle concepts and chronology.
  • Conduct a quantitative analysis of business cycles, including decomposition of time series into trend, cycle, seasonal components, as well as forecasting.
  • Apply models of monetary and fiscal policy to analyze how macroeconomic and financial shocks influence interest rates and economic activity.
  • Evaluate current business cycle conditions and assess future developments.

  General competence

  Upon completion of the course, the student can...

  • Analyze macroeconomic policies and business cycles.
  • Produce and assess forecasts for key macroeconomic and financial indicators.
  • Evaluate how business cycle conditions affect firms and households.

• Teaching

  The course consists of lectures, guest lectures and project work in groups.

• Recommended prerequisites

  Basic knowledge about macroeconomics, finance and empirical methods from the bachelor programme.

• Required prerequisites

  Basic knowledge about macroeconomics, finance and empirical methods from the bachelor program.

• Compulsory Activity

  • Mandatory assignment (approved/not approved).
  • Participation in the monthly "Great Business Cycle Analysis Competition" (GBCAC).

  Both the mandatory assignment and GBCAC competition are completed in groups of 2-3 students.

  Previously acquired course approvals are valid.

• Assessment

  4 hours individual digital school exam.

• Grading Scale

  A - F

• Computer tools

  R.

• Literature

  The course literature will consist of selected articles, research reports and book chapters, national budget, etc.

• Permitted Support Material

  Calculator

  One bilingual dictionary (Category I)

  All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support materialhttps://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/and https://www.nhh.no/en/for-students/examinations/examination-support-materials/https://www.nhh.no/en/for-students/examinations/examination-support-materials/