Università Roma Tre

The course will provide the analytical tools for understanding how the economic system as a whole is working. During the course we will study the behaviour of macroeconomic aggregates as domestic product, expenditure for consumption and investment, level of employment and unemployment, international trade and balance of payments, as well as the determination of prices, wages, interest rates and exchange rates. We will examine the mechanisms driving markets for goods, monetary and financial markets and the labor market. We will moreover examine, at an introductory level, economic growth in the long run and macroeconomic policies (fiscal and monetary), with a particular attention to the macroeconomics of the European Economic and Monetary Union.
Here you will find the topics of the lectures and their links with the textbook and the supplementary notes (slides of lectures) available on the Moodle page of the course.

Part I - Introduction and national accounts
Introductory lecture. Introduction to political economy and macroeconomics
1. A look to global macroeconomic figures and to some current issues
2. National accounts. Economic indicators. Statistical methods
Blanchard et al.: chapter I, II, Appendix 1. Supplementary notes in the slides

Part II - Basic macroeconomic models
3. Income-expenditure model in closed economy
4. Income-expenditure model in open economy
5. Money and financial markets
6. IS-LM model in closed economy
7. Extended IS-LM model
8. IS-LM model in open economy
Blanchard et al.: chapter III, IV (excluding appendix), V, VI, XVII, XVIII (excluding appendix), XIX (excluding appendix). Supplementary notes in the slides

Part III - Prices, wages, labor market
9. Prices
10. Labor market
11. Wages
12. AD-AS model
13. PS-WS model
Blanchard et al: chapter VII (excluding appendix). Supplementary notes in the slides

Part IV - Medium run
14. Inflation, unemployment, Phillips curve
15. IS-LM-PC model
16. Exchange rate systems
Blanchard et al.: chapter VIII (excluding par. 4 and appendix), IX (excluding par. 4 and 5), XX (excluding par. 4.2 and appendix). Supplementary notes in the slides

Part V - Extensions
17. Economic growth in the long period: accounting for economic growth, Solow model, technological progress
18. Expectations, production and economic policy
19. Macroeconomic policies: selected topics about public debt, fiscal rules, monetary policy rules, policies to counteract the economic crisis caused by the pandemic
Blanchard et al.: chapter X, XIII (excluding par. 3), XVI, XXI (only par. 3.3), XXII (par. 2.1, 2.3, 2.5, 4.1), XXIII (par. 2.3, 4). Supplementary notes in the slides

1) Olivier Blanchard, Alessia Amighini and Francesco Giavazzi, Macroeconomia, Nuova Edizione, Il Mulino, Bologna, 2020
2) Supplementary notes in the slides of lectures available in the Moodle page of the course

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

Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
MACROECONOMIA. Una prospettiva europea
Editore Il Mulino

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". 2020