Macroeconomic Theory and Policy

ECN400 Macroeconomic Theory and Policy

Spring 2024

Autumn 2024
  • Topics

    Most central banks and other policy institutions rely on modern macroeconomic models. In this course, you will learn the foundations for these models: how to build, and solve, such general equilibrium models. You will understand how fiscal and monetary policy affect households, firms, and the aggregate economy. Furthermore, you will be equipped to think about policy questions. How do you stimulate the economy in a recession? How does forward guidance work?

    The course will cover the following topics in macroeconomics:

    • Basics of modern macroeconomics: individual optimization
    • How do markets clear: general equilibrium
    • Planning for the future: dynamic problems
    • Consumption and savings
    • Real business cycle
    • Economic growth
    • Government spending and fiscal policy
    • Inflation and monetary policy
    • 2008 Great recession, and 2020 Covid Economics

  • Learning outcome


    Upon completion of the course, students will:

    • be able to apply relevant theories and empirics on major topics in modern macroeconomic theory and policy


    Upon completion of the course, students will:

    • be able to analyse macroeconomic questions with the help of modern macroeconomic models


    Upon completion of the course, students will be able to:

    • communicate key theoretical and empirical insights based on macroeconomic models and available macroeconomic data.

  • Teaching

    The course consists of in-person plenary lectures, guest lectures, exercise classes, and group assignments.

  • Recommended prerequisites

    Macroeconomics at the undergraduate level, for example the textbook by Jones "Macroeconomics".

  • Required prerequisites


  • Compulsory Activity

    Four assignments must be passed in order to take the exam.

  • Assessment

    4 hours individual take-home exam.

    The exam must be written in English.

  • Grading Scale


  • Literature

    • Julio Garin, Robert Lester, "Intermediate Macroeconomics" (online book)
    • Andolfatto, David (2008): Macroeconomic Theory and Policy (2nd Edition) (online book)
    • D. Backus et al. (2016): The Global Economy, NYU Stern. (online book)
    • Parts of recent articles and research reports.


ECTS Credits
Teaching language

Autumn. Offered autumn 2023.

Course responsible

Associate Professor Krisztina Molnar, Department of Economics (main course responsible).

Tenure-Track Assistant Professor Markus Johan Karlman, Department of Economics