|Course Title||Macroeconomics I|
|Institution||Tallin Technical University|
Economics is about allocation of resources. It is a study of scarcity and of choices we have to make. Every day we would like to consume more and more, our needs are virtually unlimited, but normally this is just not possible to satisfy all our desires. Such everyday problems can be relatively easily understood when confronting a single household or firm. But what about all firms or households put together? What about a country, a nation, or even the whole World?
Well, that’s what macroeconomics is about. Macroeconomics focuses mainly on national economy as a whole by exploring aggregate indicators, such as inflation, unemployment, in explanation of economic phenomenon. It can be as fascinating as anything else you will ever study, helping you to understand national policies as well as events and problems on international arena.
Macroeconomics I is basic theoretical course following Microeconomics I. It is essential that a student taking that course have some prior knowledge of economic processes on micro level. Any special mathematical knowledge is not necessary to follow that course. The course consists of 16 lectures (a 3 academic hours), each followed by a seminar (a 2 academic hours).
II Objectives of the course
III Course Detail
a. Lecture Synopsis
Lecture I. Introduction to macroeconomics. National accounting.
Lecture II. National accounting (cont’d). Long term economic growth and development.
Lecture III. Business cycles, models of aggregate demand and supply.
Lecture IV. Consumption, saving and investment.
Lecture V. Keynesian equilibrium model.
Lecture VI. Keynesian equilibrium model (cont’d). Costs and benefits of public sector, public debt.
Lecture VII. Fiscal policy.
Lecture VIII. Mid-exam I (lectures I – VII).
Lecture IX. Money and banking.
Lecture X. Inflation.
Lecture XI. Monetary theory and policy.
Lecture XII. Employment and unemployment.
Lecture XIII. Classical and neoclassical analysis of business cycles.
Lecture XIV. International trade.
Lecture XV. International Finance.
Lecture XVI. Mid-exam II (lectures IX – XV).
Each lecture is accompanied by a seminar on the same topic where students mainly solve exercises to back up freshly obtained knowledge. In the seminars students still must take two tests, both on a specific topic (e.g. national accounting and money and banking). In order to connect theoretical economics also with real-world events various actual situations are also discussed and students are encouraged to make a presentation on specific topic. This presentation can then be substituted with one of the tests.
As it follows, students must take two tests and two mid-exams during this course (all closed-book). The best test (7,5%) and the best mid-exam (22,5%) will then be taken into account in final grade along with final exam (70%). The final grade thus depends crucially on the final exam, but to qualify for the final-exam at least one test and one mid-exam must be positively graded (>50%). This clause serves as a mean of compulsion. To maintain discipline tests and mid-exams are not usually given on any other dates than scheduled. If a student has been very active during seminars and has done his tests/mid-exams/homework very well, then the final grade can also be given based on results of both tests and mid-exam. This clause is to encourage students to participate actively on seminars and also to reward top students.
V Reading list
Bulletins of Bank of Estonia (http://www.ee/epbe/).
Publications of Statistical Office of Estonia (http://www.stat.ee).
Economic Reviews of Ministries of Estonia:
Ministry of Economic Affairs (http://www.mineco.ee/est/).
Ministry of Finance (http://www.fin.ee/majandus/).
Ministry of Foreign Affairs (http://www.vm.ee/eesti/majandus/).
VI Teaching Methodology
Standard lecture-seminar approach is used as teaching methodology. When possible, graphical presentations are also used in seminars.