MPE_MAE2 Macroeconomics 2

Faculty of Economics and Administration
Spring 2014
Extent and Intensity
2/0/0. 4 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ing. Miroslav Hloušek, Ph.D. (lecturer)
prof. Ing. Zdeněk Tomeš, Ph.D. (lecturer)
doc. Ing. Jan Čapek, Ph.D. (seminar tutor)
doc. Ing. Ondřej Krčál, Ph.D. (assistant)
Ing. Vratislav Pisca (assistant)
Guaranteed by
prof. Ing. Zdeněk Tomeš, Ph.D.
Department of Economics – Faculty of Economics and Administration
Contact Person: Lydie Pravdová
Supplier department: Department of Economics – Faculty of Economics and Administration
Timetable
Mon 9:20–11:00 P101, Mon 9:20–11:00 P106
Prerequisites (in Czech)
! PEMAII Macroeconomics II
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
At the end of the course students should be able to:
-understand methods of measurement of macroeconomic indicators (GDP, inflation and unemployment) and apply these methods on data;
- derive supply and demand for factors of production and explain how national income is distributed;
- derive supply and demand for loanable funds;
- interpret formation of equilibrium at market of factors of production, market of goods and services and loanable funds market, all in closed economy;
- understand and explain quantity theory of money and relationship between interest rate and inflation (Fisher effect);
- derive money demand and explain formation of equilibrium at money market;
- explain cost of expected and unexpected inflation and cost of hyperinflation;
- explain how banking system is working, including derivation of money multiplier;
- derive model of loanable funds for small open economy;
- give information about determinants of nominal and real exchange rate;
- derive model for determination of equilibrium exchange rate and use it for analysis of economic policy;
- define various types of unemployment and explain their determinants;
- derive model of natural rate of unemployment;
- derive and interpret Solow growth model with population growth and technology progress;
- determine steady state and golden rule of capital accumulation in Solow model;
- use Solow model for economic policy analysis;
- sketch concepts of endogenous growth models;
- explain differences between neoclassical growth model (Solow) and models of endogenous growth;
- give basic facts about business cycles;
- derive IS curve from model of Keynesian cross, calculate fiscal multipliers;
- derive LM curve from theory of liquidity preference;
- determine equilibrium in IS-LM model and derive aggregate demand (AD) ;
- analyze impacts of monetary and fiscal policy on equilibrium in IS-LM model and AD curve;
- derive Mundell-Fleming model (including derivations of IS* a LM* curves) for small open economy;
- analyze effects of economic policy in regimes of fixed and floating exchange rate;
- compare exchange rate regimes, evaluate their pros and cons;
- derive short-run aggregate supply (AS), sketch basic theories;
- analyze short-run fluctuation in AS-AD model;
- describe Phillips curve;
- explain differences between adaptive and rational expectations;
- analyze desinflation policy for different kinds of expectations, calculate and interpret sacrifice ratio;
- explain differences between active and passive economic policy, define inside and outside lags;
- assess advantages and disadvantages of discretionary policy and policy that follows rules;
- give overview of opinions on government debt;
- give overview of theories dealing with consumption
- explain inter-temporal choice model and its modifications when interest rate changes and when borrowing constraint exists
- explain principles of life-cycle hypothesis and hypothesis of permanent income;

Student will be able to explain above mentioned concepts in theory and also to apply them to problems from the real world. The aim of this course is also to prepare students for final state exam, to prove they are able to think like economists and are able to express their own opinion.
Syllabus
  • 1/ Macroeconomic data 2/ National Income 3/ Money and Inflation 4/ Open Economy 5/ Unemployment 6/ Economic growth I 7/ Economic growth II 8/ ISLM model 9/ Mundell-Fleming model 10/ Aggregate Supply and Phillips Curve 11/ Monetary and Fiscal Policy 12/ Consumption
Literature
    required literature
  • MANKIW, N. Gregory. Macroeconomics. 7th ed. New York: Worth Publishers, 2010, xxxiv, 598. ISBN 9781429238120. info
  • HOLMAN, Robert. Makroekonomie : středně pokročilý kurz. 1. vyd. Praha: C.H. Beck, 2004, xiv, 424. ISBN 8071797642. info
Teaching methods
lectures
Assessment methods
Final written multiple-choice test
Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
General note: Nezapisují si studenti, kteří absolvovali předmět PEMAII.
Information on course enrolment limitations: max. 30 cizích studentů; cvičení pouze pro studenty ESF
Information about innovation of course.
This course has been innovated under the project "Inovace studia ekonomických disciplín v souladu s požadavky znalostní ekonomiky (CZ.1.07/2.2.00/28.0227)" which is cofinanced by the European Social Fond and the national budget of the Czech Republic.

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Listed among pre-requisites of other courses
The course is also listed under the following terms Spring 2010, Spring 2011, Spring 2012, Spring 2013, Spring 2015, Spring 2016, Spring 2017, Spring 2018, Spring 2019, Spring 2020, Spring 2021, Spring 2022, Spring 2023, Spring 2024, Spring 2025.
  • Enrolment Statistics (Spring 2014, recent)
  • Permalink: https://is.muni.cz/course/econ/spring2014/MPE_MAE2