Faculdade de Ciências e Tecnologia

Macroeconomics and Globalization

Code

10861

Academic unit

Faculdade de Ciências e Tecnologia

Department

Departamento de Ciências Sociais Aplicadas

Credits

3.0

Teacher in charge

Joaquim Amaro Graça Pires Faia e Pina Catalão Lopes

Weekly hours

3

Total hours

42

Teaching language

Português

Objectives

This course investigates the macroeconomic environment in which firms operate. It aims to provide the basic concepts and tools of analysis for understanding the working of national economies and the global economy, exploring data alongside economic theory and the critical reading of economic reports/articles. It studies the behavior of macroeconomic aggregates, including cyclical fluctuations, the potential output and the reasons for the (un) successful economic growth of countries and the role of the institutional framework. Discusses and simulates the effects of economic policy, particularly monetary and fiscal policy. Also discusses the relationship between macroeconomics, financial system and financial assets. Furthermore, the open economy setup is studied, including the balance of payments, competitiveness and the exchange rate, ending with some notes on reasons, characterization and resolution of major international crises.

Prerequisites

No prior knowledge of Economics required.

Subject matter

I. National Accounts, data and concepts
II. Economic growth, aggregate supply, labor market and unemployment
III. Consumption, Savings and Investment
IV. Money, Monetary policy and Prices
V. Government Spending and Fiscal Policy
VI. Business Cycles and Stabilization
VII. Financial system, assets and debt
VIII. Open economy, balance of payments and exchange rate
IX. Foreign trade and capital movements
X. Globalization

Bibliography

The relevant literature for each topic will be indicated in the slides.

Recommended

Miles, D., Scott, A. and Breedon, F., 2012, Macroeconomics: Understanding the Global Economy, Wiley

Dornbusch, R., Fischer, S. and  Startz, R., 2007, Macroeconomics, McGraw-Hill (há na Biblioteca)

 

Additional

Burda, M. and Wyplosz, C., 2009, Macroeconomics: A European text, Oxford University Press

Mankiw, G., 2010, Macroeconomics, Worth Publishers

Krugman, P., Obstfeld, M. and Melitz, M., 2012, International Economics: Theory and Policy, Prentice Hall

 

Teaching method

Lectures that include analysis of real world economic problems.

Evaluation method

 TWO ALTERNATIVE METHODS:

a) Two midterms, each accounting for 1/2 for the final evaluation; each midterm covers only the part of the material not evaluated in other midterms, although possibly involving concepts given throughout the semester. Minimum grade of 9.5 points (out of 20) is needed for approval. Dates for midterms are: Midterm 1-  October 31, 2017 (12.30h, room TBA) and Midterm 2 - December 12, 2017 (12.30h, room TBA).

b) Final Exam, worth 100% of the final grade. Minimum grade of 9.5 points (out of 20) is needed for approval.

c) Improving the grade requires the respective exam, which grade makes the 100% of the final grade.

Optional:  possibility to individually add 1 point to the final grade, if approved in the course, by: i) delivering a 2 commentary articles of one page length each (including the news/issue and commentary) or 1 with 2-3 pages. Each comment must be explicitly based upon the course material on a given subject, and should explain the model used, making possibly graphical analysis, use as much as possible real data and organize arguments in a way to present a brief  (one paragraph) critical analysis and suggestion of an alternative ii ) 2 simulation exercises macroeconomic policy (using the Presidential associated with the book Game of Macroeconomics N. Gregory Mankiw, http://bcs.worthpublishers.com/mankiw7/ # 517719__524559__) successfully performed, which will be measured by lower unemployment and lower inflation. These additional homeworks, i) and ii), can be delivered during the semester until the end of the 14th week.

 

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