Course detail

Macroeconomics 2

FP-makPAcad. year: 2022/2023

Subject Macroeconomics 2 is the advanced form of the subject Macroeconomics, which is taught in bachelor study program. The goal is the enlargement of economic knowledge, mainly focused on macroeconomic theories. The main topics of the subject are aggregate indicators, the macroeconomic equilibrium including the models of economic equilibrium, the theory of the factor market, money market, business policy and actual economic questions.

Language of instruction

Czech

Number of ECTS credits

6

Mode of study

Not applicable.

Guarantor

prof. Ing. Marek Zinecker, Ph.D.

Department

Institute of Economics (ÚE)

Learning outcomes of the course unit

After finishing the course students should be able to understand theoretical basis and principles of economics, in context of contemporary problems.

Prerequisites

The knowledge of Macroeconomics, Microeconomics and Econometrics is expected.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The course contains of two-hour lectures that explain basic principles, problems and methodology of the discipline, and one-hour practical seminar. The practical exercises promote the practical knowledge of the subject presented in the lectures and also are concerned on handling numerical tasks.

Assesment methods and criteria linked to learning outcomes

Student gets credit if he receives at least 25 points out of 50 possible points from seminars. Assessment from the seminars is a part of the final evaluation of the subject. The maximum of 25 points will be awarded for two test , from which a student must obtain at least 12.5 points.

If a student does not receive enough points from the test, he / she can repeat the test in a one term for correction set by the teacher. 

The requirements for the final exam in a written form are the knowledge of the subject and the obtained credit. The maximum number of possible points of the written test is 50, the minimum is 25 points. In the overall assessment, the points of the seminars and examination are added.

The scale of the resulting classification:
(student may gain from exercise 30 points and max.30 points of the final exam, a total of 100 points for the subject)
A: 90-100 points
B: 80-89 points
C: 70-79 points
D: 60-69 points
E: 50-59 points
F: less than 50 points

Course curriculum

1. Mainstream of the economics theory.
2. The theory of money and the money market, the quantity theory of money, the theory of neutrality of money.
3. Unconventional instruments of monetary policy, quantitative easing
4. The theory of interest, savings, consumption, investment and investment multiplier.
5. Market for loanable funds in a closed and an open economy.
6. The theory of international trade, balance of payment, external balance of state and exchange rate mechanism.
7. Net export function, Marshall-Lerner condition
8. Models of economic equilibrium, general markets equilibrium, model IS-LM for a small closed economy.
9. Changes in the IS-LM model, complete Keynesian model
10. Mundell-Fleming model, IS-LM (IS-LM-BP) in a small open economy.
11. The theory of business cycles, real and monetary cycles, economic growth and the models of economic growth (Solow's Growth Model, Cobb-Douglas Production Function, Endogenous Growth Theory).
12. The balance of the labour market, the natural rate of unemployment, Phillips curve theories, human capital theory.
13. Economic policy and economic policy failures, economy in speaking to political issues and sociological issues.

Syllabus of tutorials:
Introduction to the course, repeating the elementary macroeconomic knowledge
Quantity theory of money
Value theory, international trade
Market for loanable funds, money market, external equilibrum state
Exchange Rates
Models IS-LM

Work placements

Not applicable.

Aims

The main objective of the course is enlargement of macroeconomic knowledge and intensifying of students' abilities in understanding and solving of actual economics problems.

Specification of controlled education, way of implementation and compensation for absences

Control of students' attendance and results is fully in competence of the teacher.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

HOLMAN, R. Makroekonomie: středně pokročilý kurz. 3. vydání. Praha: C.H. Beck, 2018, 480 s. ISBN 978-80- 7400-541-1. (CS)
HOLMAN, R. a kol. Dějiny ekonomického myšlení. 4. vyd. Praha: C. H. Beck, 2017. 576 s. ISBN 978-80-7400-641-8.

Recommended reading

MANKIW, G. Macroeconomics. 10th edition. New York: Worth Publishers, 2019. 656 p. ISBN 978-1-3191-0599- 0.
MANKIW, G. Principles of Economics. Cengage Learning, 9th edition, 2020, 864 p. ISBN 978-0-3570-3831-4.

Classification of course in study plans

  • Programme MGR Master's

    branch MGR-UFRP-D , 1 year of study, winter semester, compulsory
    branch MGR-ŘEP , 1 year of study, winter semester, compulsory

  • Programme MGR-IM Master's 1 year of study, winter semester, compulsory
  • Programme MGR-MEO Master's 1 year of study, winter semester, compulsory
  • Programme MGR-SRP Master's 1 year of study, winter semester, compulsory
  • Programme MGR-UFRP Master's 1 year of study, winter semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

doc. Ing. Petr Rozmahel, Ph.D.

Syllabus

1. Mainstream of the economics theory.
2. The theory of money and the money market, the quantity theory of money, the theory of neutrality of money.
3. Unconventional instruments of monetary policy, quantitative easing
4. The theory of interest, savings, consumption, investment and investment multiplier.
5. Market for loanable funds in a closed and an open economy.
6. The theory of international trade, balance of payment, external balance of state and exchange rate mechanism.
7. Net export function, Marshall-Lerner condition
8. Models of economic equilibrium, general markets equilibrium, model IS-LM for a small closed economy.
9. Changes in the IS-LM model, complete Keynesian model
10. Mundell-Fleming model, IS-LM (IS-LM-BP) in a small open economy.
11. The theory of business cycles, real and monetary cycles, economic growth and the models of economic growth (Solow's Growth Model, Cobb-Douglas Production Function, Endogenous Growth Theory).
12. The balance of the labour market, the natural rate of unemployment, Phillips curve theories, human capital theory.
13. Economic policy and economic policy failures, economy in speaking to political issues and sociological issues.

Exercise

26 hod., optionally

Teacher / Lecturer

Ing. et Ing. Kateřina Procházková, Ph.D.

Syllabus

1. Introduction to the course, revision of basic macroeconomic knowledge.
2. The quantity theory of money, money market.
3. Transmission mechanism.
4. Theories of savings, consumption and investments, Keynesian cross.
5. Market for loanable funds in a closed and open economy.
6. Balance of payments, external balance of state and exchange rates.
7. Real exchange rate, net export function, Marshall-Lerner condition.
8. Model IS-LM in the three-sector economy.
9. Imbalance in the IS-LM model in a three-sector economy, non-price factors affecting the IS-LM model, the principle of derivation of the AD curve from IS-LM model.
10. IS-LM model for a small open economy, model IS-LM-BP.
11. Models of economic growth.
12. Labour market.
13. Credit written work.