International Macroeconomics (MSB111)

The course aims to provide deeper insights into macroeconomic theory and its application to current macroeconomic policy problems.

The main topics are economic growth, determination of employment, monetary and fiscal policy in a small open economy, exchange rate determination, the causes and effects of government budget deficits and external imbalances.

Facts about economic aggregates and macroeconomic models. Particular attention is given to:

• Economic growth and business cycles
• Monetary policy
• The current account of the balance of payments
• Employment and unemployment
• Exchange rates
• Economic effects of government budgets
• Financial crises

Throughout the course, continuous reference will be made to historical and current macroeconomic phenomena, from both a global perspective and with a special focus on Norway.

Upon completion of the course, the student should be able to:

Knowledge:

Upon completion of the course, the student will have knowledge of

• basic macroeconomic models of economic growth, business cycle fluctuations, employment and unemployment, inflation, budget deficits, national debt, and international macroeconomics involving exchange rate policy.

Skills:

Upon completion of the course, the student will be able to

• describe the above-mentioned models and derive their implications;
• apply basic macroeconomic models to phenomena such as economic growth, current accounts, employment,
• exchange rates, business cycle fluctuations, monetary policy, and budget deficits;
• analyze international aspects of macroeconomic policy and understand the role of international economic institutions;
• use various simplified models to analyse different problems;
• evaluate the feasibility of the assumptions behind different models, as well as their limitations, and create new ones;
• analyze whether the implications of a model are more or less factually accurate;
• assess the feasibility of macroeconomic arguments in the public debate;
• create and communicate new potential solutions to contemporary macroeconomic challenges.

In this course, students will learn through a combination of traditional lectures, exercises, seminars, student

presentations, and individual study.

Assessment: The course is examined on the basis of a written examination, written assignments, and student presentations.