Università Roma Tre

1. The Economic system. Definitions and measurement of the main macroeconomic aggregates
2. Macroeconomic equilibrium and the Keynesian theory of income and employment
3.The public sector
4. The open economy: balance of payments, exchange rate, external constraint
5. Money and financial activities. The Central Bank and the banking sector, Demand and supply of money, interest rate determination.
6. Aggregate investment and the rate of interest. Controversial aspects.
7. The IS-LM model. Economic policy in the IS-LM model in a closed economy. Effects of changes in nominal wages
8. The IS-LM model for the open economy, exchange rate regimes and the effects of economic policy
9.The AD-AS model and its implications for the theory of output and employment
10. Inflation and unemployment some elements towards an interpretation

C. De Vincenti, MACROECONOMIA - ELEMENTI DI BASE, editore Carocci, 2003 (except parr 9.5 e 9.6 and chapt. 10) + macroeconomics hand-outs by prof. Antonella Stirati available at the library

The course consists of three modules
First module:
• National Accounts
• Aggregate demand. Income multipliers
• The IS-LM model

Second module:
• Aggregate demand in an open economy
• The IS-LM model in an open economy

Third module:
• The labour market
• The AD-AS model
• The natural rate of unemployment and the Phillips curve
• Inflation, production and money growth. The quantity theory of money
• Introduction to growth models

O. Blanchard, F. Giavazzi, A Amighini
Macroeconomia
Il Mulino, Bologna, 2010

Introduction
- What is Macroeconomics
- Some elements of the System of National Accounts

Part 1: The Short Run
- The Goods Market
- Financial Markets
- The IS-LM Model

Part 2: The Medium Run
- The Labor Market
- The Phillips Curve, the Natural Rate of Unemployment, and Inflation
- The IS-LM-PC Model

Part 3: Extensions
- Introduction to the theory of economic growth
- The open economy and the Exchange Rate Regimes

- Olivier Blanchard "Macroeconomics". 7th edition Pearson