Macroeconomic Policy [ LPOLS1211 ]

A written exam of 3 hours will be composed as follows: a series of "TRUE" or "FALSE" items to be justified by a three line paragraph, a piece of newspapers economic text to be explained by the mean of an appropriate analytical tool, and an exercise which will be similar to those solved during exercise sessions. A compulsory mid-term test will partially count (a quarter of the total) towards the final mark.

The course adopts an inductive approach. Economic events or facts, as reported in newspapers, will be shortly discussed in order to introduce the chapters dealing with the related theoretical models.

The course will presents key macroeconomic variables before to deal with goods, financial and labour markets. Monetary and Fiscal policies will then be analysed through models (IS-LM for the short term and AS-AD for the medium term). The link between unemployment and inflation will be discussed before that which prevails between financial markets and economic policies through expectations. Then, features of opened economies, domestic economy competitiveness, exchange rate policy and macroeconomic interdependence will be treated before to tackle long term growth factors and growth policy.

The book "Macroéconomie", 5th edition, of Olivier Blanchard and Daniel Cohen. (Ed. Pearson) is compulsory. The course's slides along with a folder of economic newspapers articles will progressively be uploaded to icampus on the Net.