Macroeconomic Theory and Policy

ECN400 Macroeconomic Theory and Policy

Spring 2021

Autumn 2021
  • Topics

    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 have:

    • an in-depth, up-to-date knowledge of 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, online lectures, guest lectures, exercise classes, and group assignments.

  • Recommended prerequisites

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

  • Required prerequisites


  • Requirements for course approval

    70% of assignments must be passed (approved) in order to take the exam.

  • Assessment

    8 hours take-home exam. 

    The exam must be written in English.

  • Grading Scale


  • Computer tools

    Computers and statistical software are used to address empirical questions in some of the assignments.

  • Literature

    • Andolfatto, David (2008): Macroeconomic Theory and Policy (2nd Edition) (online book)
    • D. Backus et al. (2016): The Global Economy, NYU Stern. (online book)
    • Maurice Obstfeld and Kenneth Rogoff: Foundations of International Macroeconomics, MIT Press (selected parts)
    • Parts of recent articles and research reports.


ECTS Credits
Teaching language

Autumn. Offered Autumn 2020.

Course responsible

Associate Professor Krisztina Molnar, Department of Economics

Postdoctoral Fellow Marc Goñi, Department of Economics