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Identical coursesMacro-economics and Economic Policy (B-KUL-HBA16C)
Verbeke Tom (coordinator) | Verbeke Tom Aims
Macroeconomics establishes a connection between the basis of Principles of managerial economics and the specialised subjects of the student's training (especially the last years). This subject introduces some aspects necessary for an independent analysis of macroeconomic problems. In addition, the course aims to prepare students for subsequent courses e.g. international economics, monetary economics and various subjects within corporate finance.
The course aims at contributing to the following learning results:
The student...
- On the macro-economic level, interprets and analyses the behaviour of the different economic agents on the various domestic and foreign markets (3.e)
- Describes and analyses the behavior of economic agents (consumers, firms, governments and foreign) and markets (real sector, money and financial market, exchange market and labor market) (3.e.1)
- Defines, explains and uses, both graphically and model-based, macro- and micro-economic concepts (3.h)
- Describes what is meant by and is able to calculate macro-economic concepts and variables (e.g. GDP, national income, economic growth, inflation, unemployment, devaluation, balance of payments) (3.h.6)
- Analyses a simultaneous equilibrium model and explains how the model works towards an state of equilibrium, using both a graph as well as words (3.h.7)
- Evaluates the effectiveness of government intervention (fiscal and monetary policy, labor market policy, exchange rate policy) (Macro-ec and Ec Policy) (3.h.8)
- Describes the perspectives of economic science, uses them in a (business) economics context and reflects critically on them (3.i)
- Understands macro-economic articles in the daily press and is able to situate and evaluate critically but constructive, their content within the field of macro-economics (Macro-ec and Ec Policy) (3.i.3)
Previous knowledge
Students who want to include Macro-Economics and Economic Policy in their program should have completed Managerial Economics A and B and Mathematics for business A and B
Identical courses
This course is identical to the following courses:
HBH68E : Macro-economie en beleid
Is included in these courses of study
- Bachelor of Business Administration (Brussels) 180 ects.
- Bachelor of Business Administration: Double Degree Kedge (outgoing) (Brussels et al) 240 ects.
- Bachelor of Business Administration: Double Degree Kedge (incoming) (Brussels et al) 242 ects.
- Preparatory Programme: Master of Business Administration (Programme for students started before 2023-2024) (Brussels) 90 ects.
- Courses for Exchange Students Faculty of Economics and Business (Brussels)
- Bachelor of Business Administration: Double Degree Galway (outgoing) (Brussels et al) 240 ects.
- Preparatory Programme: Master of Business Administration (Programme for students started in 2023-2024 or later) (Brussels) 75 ects.
- Preparatory Programme: Master of Business Administration (Programme for students started in 2023-2024 or later) (Antwerp) 75 ects.
Activities
6 ects. Macro-economics and Economic Policy (B-KUL-HBA16c)
Content
The course starts with a review of some of the basic macro-economic concepts such as GDP, growth, unemployment and labor markets and inflation (Module 1, chapter 1 and 2).
In the second module, the course develops a closed economy short run model for the goods and financial market. Chapter 3 determines demand and equilibrium in the goods market. Chapter 4 reviews equilibrium in financial markets. The IS LM Model is then introduced in chapter 5. The final chapter of module 2 extends the model and introduces the difference between real and nominal interest rates and the risk premium.
In the third module, the focus shifts to the medium run. Starting from equilibrium in labor markets (chapter 7), the course introduces the Phillips curve in chapter 8. These chapters allow to determine the natural rate of unemployment and potential ouput. In chapter 9 the course builds the medium run IS LM PC model.
In module four, the course introduces long term growth. After a look at the facts (chapter 10), the Solow model is used to determine the steady state level of output. In chapter 11, the course analyzes capital accumulation. Technology and technological progress is the focus of chapter 12. The final chapter of module four looks at the challenges of growth.
The fifth module focuses on the role of expectations in financial markets and introduces the expected discounted present value model. Using this model, the course determines the price of bonds, analyses the yield curve (sport curve) and expected interest rate (forward rates) and the valuation of stocks (chapter 14). In chapter 15 the course reviews the goods market and includes expectations in the model for consumption and investment. This allows to introduce the Permanent Income Hypothesis, the Tobin's Q. The final chapter of this module (chapter 16) discusses the policy implications for both monetary and fiscal policy. Here the course also looks at the dynamics of government debt.
The final section develops an open economy model. The course first introduces the exchange rate (bilateral, effective, nominal and real) and the relation among exchange rates and interest rates in the domestic and foreign economy. Equilibrum in the goods market is determined in chapter 18. Equilibrium in both the goods and financial markets is covered in chapter 19 (Mundell-Fleming model). The final chapter of the module discusses the choice of exchanger rate systems.
Course material
Compulsory:
Oliver Blancard. Macroeconomics. Global edition. Eighth Edition. Pearson Education Limited 2021.
ISBN 10: 1-292-35147-0
ISBN 13: 978-1-292-35147-6
Additional reading material will be made available on Toledo
Format: more information
Traditional lecture
In addition to lectures, the Toledo page for the course allows students to check their progress. After each module, there is a small multiple choice test. This test is not graded and not part of the final exam or mark. The test must be completed to access the material for the next module.
Is also included in other courses
Evaluation
Evaluation: Macro-economics and Economic Policy (B-KUL-H73589)
Explanation
There are 48 multiple choice questions. Each question has 4 options. Grading is as follows: good answer: 1, wrong/no answer: 0. Students start at -8.
The features of the evaluation and determination of grades of the second examination opportunity are identical to those of the first examination opportunity, as described above.