Dynamic Macro

The course covers models and methods of macroeconomic problems, with particular emphasis on the analysis of policy and business cycles.

Knowledge

You learn

• how public deficits affect aggregate demand (Ricardian equivalence)to analyze sustainability of public deficit
• show pension systems affect savings and growth (overlapping generations model)
• how private and public savings decisions affect the foreign economy of a country (the trade account and the current account)
• the relationship between monetary policy, inflation and business cycleshow expectations affect the macroeconomy
• how the financial markets and debt accumulation affect the business cycle (background and effects of financial crises)

Skills

You should be able to

• explain central theories and models of public deficits, macroeconomic consequences of decisions on savings and dynamic effects of monetary policy
• analyze a wide spectrum of macroeconomic problems by the use of suitable models

General competence

You should be able to

• read and understand reports and research articles dealing with issues discussed in the course
• use the content of the course in your own academic work like your master

4 hours of lectures every week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term. The term papers can be written as a joint project. The course is an optional master's course, and is not taught every autumn semester. Check www.ntnu.edu/econ. Students enrolled in ISØ's master programs can take the course any semester.