| 1. Basic concepts and relevant facts about the demand and supply sides. |
1.1 The demand side: characteristics; the equilibrium relation investment-savings; the role of expectations in consumption and investment decisions; the Fisher equation.
1.2 The supply side: production and unemployment; supply-side effects on unemployment; nominal rigidities, inflation and rate of unemployment. The Phillips' curve, aggregate supply and natural rate of unemployment.
1.3 Supply-side policy, institutions and unemployment. |
| 2. Macroeconomic policy in the short to medium term. |
2.1 Overview: economic cycle, output gap and stabilisation; the role of central banks; inflation and deflation.
2.2 Models of macroeconomic policy in the medium run. |
| 4. The financial environment. |
4.1 Money and the macro-economy.
4.2 A modern financial system.
4.3 Banks and macro stabilisation. |
Subjects