Course description

Macroeconomic Policy


This course is a graduate level course in about macroeconomic policy. It covers three main topics: monetary policy, macroprudential policy and fiscal policy.

Course content

1. Introduction.

2. Monetary policy

  • Operating procedures in monetary policymaking.
  • Monetary policy in the new Keynesian model.
  • Forward guidance.

3. Financial stability and macroprudential policy

  • Banks and credit
  • Macroprudential regulation
  • Inflation targeting and financial stability

4. Fiscal policy

  • The government budget constraint and Ricardian equivalence
  • Sustainable public debt
  • Tax-smoothing

Learning outcome knowledge

Theoretical and applied coverage of macroeconomic policy. Quantitative models for analyzing monetary policy, macroprudential policy and fiscal policy. Special attentionĀ on goals and targets for monetary policy, onĀ  trade-offs for monetary policy and gains from commitment, on the importance of credit for understanding business cycles and implications for policy, and on budget deficits and fiscal policy.

Exam organisation

  • Presentation: 20%
  • Written exam: 80%