Business Cycle Analysis

FIE403 Business Cycle Analysis

  • Topics

    Topics

     

    This course considers economic theory, quantitative methods and empirical insights relevant for the analysis of business cycles domestically as well as internationally. A particular focus is directed to monetary policy and the interaction between business cycles and financial markets. A key feature of the course is the emphasis on present day-to-day developments in the global economy.

    • The decomposition of real GDP in trend and business cycles, impulse- and propagation mechanisms
    • Quantitative analysis of business cycles: Decomposition of cycles vs. trend (times series and filter techniques), seasonal adjustments, trend-forecasts
    • Business cycles versus financial cycles
    • Monetary policy and interest rate setting
    • Economic and financial indicators
    • Different macroeconomic "schools" and models of business cycles
    • The interaction between financial markets and macroeconomic developments
    • Aspects of productivity growth and measurement
    • Macroeconomic developments and the housing- and real estate markets
    • Oil prices, the petroleum sector and business cycles
    • Macroeconomic prospects domestically and globally

  • Learning outcome

    Learning outcome

    The students will reach an advanced understanding of theory, quantitative methods and empirical insights

    Knowledge

    Students will obtain in-depth knowledge of the analysis of business cycles and the interaction between macroeconomic developements and financial markets.

    Skills

    Students will obtain particular knowledge about monetary policy, business cycles, economic and financial indicators and also about the effect of macroeconomic developments on the stock and bond markets. In addition, the course will provide students with updated knowledge about present macroeconomic issues and prospects for the global economy, and it will provide tools for empirical analyses of these issues. Students will be exposed to first rate guest lecturers working in the financial markets and in institutions like the Norwegian Central Bank or the Ministry of Finance, and they will gain experience in case/project work.

    General competence

    Students will reach an advanced understanding of theory, quantitative methods and empirical insights relevant for the analysis of business cycles domestically as well as internationally.

  • Teaching

    Teaching

    Lectures, guest lectures and project work in groups.

  • Required prerequisites

    Required prerequisites

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

  • Requirements for course approval

    Requirements for course approval

    One empirical assignment and one case exercise.

  • Assessment

    Assessment

    Four hour written exam

  • Grading Scale

    Grading Scale

    Grading scale A - F

  • Computer tools

    Computer tools

    Use of standard computer tools (excel etc.).

  • Semester

    Semester

    Autumn and spring

  • Literature

    Literature

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

Overview

ECTS Credits
7.5
Teaching language
  English in the autumn semester, Norwegian in the spring semester
Semester
Spring, Autumn

Course responsible

 

  • Gernot Doppelhofer
  • Birger Vikøren
  • Thor Andreas Aursland
  • Jan Tore Klovland