Faculty of Business and Management Sciences · Islamic Economics and Finance · Undergraduate
Course Objective
The goal of the course is to introduce the advanced level macro economic issues in main stream economics.
Course Content
This course covers advanced macroeconomic theories and analytical methods. Topics include growth, business cycles, dynamic stochastic general equilibrium (DSGE) models, and open economy macroeconomics. Additionally, macroeconomic policy analyses are conducted using empirical macroeconomic techniques.
Required Resources
Romer, D. (2019). Advanced Macroeconomics (5th Edition). McGraw-Hill.
Obstfeld, M., & Rogoff, K. (1996). Foundations of International Macroeconomics. MIT Press
Recommended Resources
Tiryaki, S. (2018). Makroekonomi: Teori ve Politika. Ekin Yayınevi.
Explanations
70 per cent participation is mandatory.
Rules
Academic ethical rules must be followed both inside and outside the classroom.
Course Learning Outcomes
- Students will be able to analyze macroeconomic models by understanding advanced growth and business cycle theories.
- Students will be able to conduct macroeconomic policy analyses by understanding the key components of dynamic stochastic general equilibrium (DSGE) models.
- Students will be able to assess macroeconomic instability and crisis dynamics using advanced models.
- Students will be able to interpret exchange rate dynamics and international capital flows within the framework of open economy macroeconomics.
- Students will be able to perform data analysis and model estimation using empirical macroeconomic methods.
Core Area Distribution
Teaching Methods
Assessment & Evaluation
ECTS / Workload
| Activity | Quantity | Duration (h) | Total Workload |
|---|---|---|---|
| Course Duration (Including Exam Week) | 16 | 3 | 48 |
| Out of Class Study Period | 19 | 4 | 76 |
| Midterm | 1 | 1 | 1 |
| Quiz | 0 | 0 | 0 |
| Assignment | 0 | 0 | 0 |
| Practice | 0 | 0 | 0 |
| Final | 1 | 2 | 2 |
Course Schedule
| Week | Subject | Preparation |
|---|---|---|
| 1 | General Intro. | . |
| 2 | Keynesian Theory, IS-LM model | . |
| 3 | Keynesian Theory and IS-LM | Paul Samuelson and Robert Solow (1960), “Analytical Aspects of Anti-Inflation Policy,” American Economic Review 50: pp. 177-94. |
| 4 | IS-LM model III | . |
| 5 | Phillips Curve | . |
| 6 | New Keynesian Models | Mankiw, N. Gregory, 1988. “Imperfect competition and the Keynesian cross,” Economics Letters, Elsevier, vol. 26(1), pages 7-13 |
| 7 | Monetarism and New Classical Economics | Milton Friedman (1968), “The Role of Monetary Policy,” American Economic Review 58 (May): 1-17. Robert Lucas and Thomas Sargent(1979),“After Keynesian Macroeconomics,” in After the Phillips Curve: The Persistence of High Inflation and High Unemployment (Boston: Federal Reserve Bank of Boston), chapter 19. |
| 8 | Midterm | . |
| 9 | The Solow Model and Growth Accounting | – Robert M. Solow, “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics, February 1956, pp. 65-94. – Robert Solow (1957), “Technical Change and the Aggregate Pro- duction Function,” Review of Economics and Statistics 39: pp. 312-20. |
| 10 | The Neoclassical growth model | Sala-i-Martin, Xavier X, 1996. “The Classical Approach to Convergence Analysis,” Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-36, July. |
| 11 | The Neoclassical growth model | Sala-i-Martin, Xavier X, 1996. “The Classical Approach to Con- vergence Analysis,” Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-36, July. |
| 12 | Overlapping Generations | Peter A. Diamond, “National Debt in a Neoclassical Growth Model,” American Economic Review, December 1965, pp. 1126- 1150. |
| 13 | Overlapping Generations II | . |
| 14 | Endogenous Growth Theory | – Romer, Paul M. 1990. “Endogenous Technological Change.” Journal of Political Economy 98 (October, Part 2): S71-S102. – Solow, Robert M, 1994. “Perspectives on Growth Theory,” Jour- nal of Economic Perspectives, American Economic Association, vol. 8(1), pages 45-54, Winter. |
| 15 | Augmented Growth Models | . |
| 16 | Overview | . |