Macroeconomics – Faculty of Law, Administration and Economics

Program:

Managerial Economics

ECTS:

Lecturer:

Mateusz Machaj PhD

Email:

mateusz.machaj@uwr.edu.pl

Type:

Compulsory

Level:

Advanced

Personal information:
https://prawo.uni.wroc.pl/user/14603

External links:
http://mises.pl/

Lecture

Number of hours:

2h X 8 weeks = 16 hours (1 semester)

Classes

Number of hours:

2h X 7 weeks = 14 hours (1 semester)

Objective:

The purpose of this course is to acquaint the students with basics of modern macroeconomic framework, its terms, analysis and way of posing macro problems. Also modern schools of thought are briefly examined.

Assessment:

Oral examination

Contents:

The subject of Macroeconomics as opposed to Microeconomics. Macroeconomics as a separate field in economics? Basic problems in theory of Macro. History of Macroeconomics in the background of economic history and history of economic thought.
Economic systems and political doctrines in macroeconomic science. Normative and positive macroeconomics. Why so many macroeconomic schools as compared to micro sphere?
The problem of datum. Gross Domestic Product and its criticism. Alternative approaches: HDI, GNO, NEW, PPP, PPR.
Types of unemployment (voluntary and involuntary). Natural rate of unemployment and NAIRU. The concept of "full employment".
"Money" market or does money have a market of its own? Inflation. Definition and different types. How it is measured and how it can be manipulated. Controversies over the causes of inflation. Taxonomy of deflation.
Money supply – how it is measured. Evolution of the banking system. Different methodologies on how it should be measured. Central bank’s tool and policies. What decides about the money supply? Controversies over the role of money supply and the control over it.
Fiscal policy – its effects and consequences. Budget and types of taxes. The influence of government debt upon the economy.
"Classical" Macroeconomics. Mill’s dictum and Say’s law of markets. The function of a price system and its role in increases employment and the level of investment. Classical interpretations of business cycles (Hume, Ricardo).
Hayekian model of a business cycle. Monetary overinvestment theory. Real and monetary approaches to business fluctuations. Secondary effects in the downward phase of a business cycle. Is there a role for capital theory in macroeconomics?
Keynesian approach to macroeconomics – rejection of Mill’s dictum and Say’s law of markets. Keynes’s philosophy and its impact on his economic views.
Samuelson-Hicks acceleration principle.
Consumption function and autonomous investments. Different approaches to consumption function. Keynesian cross and multiplier effect.
Relations between inflation and unemployment. Philips curve and long-run Philips curve. Problems with macroeconomic modeling. NAIRU and NRU.
Fisher’s equation and Friedman’s plucking model.
Different monetary standards. Classical gold standard, Bretton Woods. Freely fluctuating fiat currencies and fixed rates.
Proposals for monetary regimes and different schools of thought. Central banking and Free Banking.
Modern macroeconomic schools. New Keynesians, Neo-Keynesians, Post-Keynesians, Monetarists, Austrians, Rational Expectations, New Classicals.