Course description: Firstly financial and goods markets will be analyzed through the IS-LM model in the closed economy , for a subsequent study of the same model in the open economy. We will then investigate the role of the economic policy in the open economy, proceeding with a focus on the labour market before the introduction of the AS-AD model. After that, we will study the exchange rate regimes; moreover we will have a focus on growth theories and on the crisis of 2007-2010.

Goal: The aim of this course is to provide students with the knowledge required to understand the macroeconomic functioning of the world economy giving them useful instruments to achieve a personal and critical idea about the operation of international markets and the use of economic policy for their regulation. After successful completion students will be able to analyse real world macroeconomic issues addressing the proper policies to apply in order to respond to them.

Teaching and learning methods: The course will be composed by traditional lectures, class discussions and activities, individual work and practice problems.

Assessment: Mid-term exam, final exam, group work.

Prerequisite: Knowledge of the IS-LM model, e.g. chapters 1 to 5 of Blanchard, "Macroeconomics", Pearson Education If all classes in 'International Macroeconomics' are fully booked, a waiting list will be provided from February, 17th to February, 21st 2011 on the learning platform (https://learn.wu.ac.at/Warteliste_IntMakro/). We will try to allocate all vacant seats until February, 25th 2011, but nevertheless we cannot ensure a seat for all placed students on the waiting list. Please note, that we will not take into consideration any placements on the waiting list by students who are already registered for one of the classes through the regular registration process on LPIS. Any vacant seats in the classes will only be allocated through the waiting list – neither via email nor by phone nor in the 1st course session.

1	Author: Blanchard, Amighini, Giavazzi Title: Macroeconomics-A European Perspective Publisher: Financial Times/ Prentice Hall Edition: 1st edition Remarks: 1-8 and 18-19 Year: 2010 Content relevant for class examination: Yes Recommendation: Essential reading for all students Type: Book
2	Author: Blanchard, Olivier Title: Macroeconomics Publisher: Pearson education Edition: 5th edition Remarks: Chapters 1-7 and 18-21 Year: 2008 Content relevant for class examination: Yes Recommendation: Essential reading for all students Type: Book

Lecturer´s contact: For any inquiry please contact me at "aschneeb@wu.ac.at"

Miscellaneous: One of these two equivalent textbooks can be used during the course: 1-Blanchard, "Macroeconomics", Pearson Education, 5th edition.(The 4th edition can be used, but not previous ones) 2-Blanchard, Amighini, Giavazzi, "Macroeconomics-A European Perspective", Financial Times/ Prentice Hall, 1st edition.

Unit	Date	Contents
1	Mo, 07.03.2011	Vorbesprechung • Rothschild, K.W. (2002); Absence of Economic Power, Journal of Socio-Economics 31 (2002) 433–442 • Rothschild, K.W. (2002); NewWorlds - New Approaches, KYKLOS, Vol. 58 – 2005 – No. 3, 439–447
1		Introduction GDP and macroeconomic variables; short,medium and long run (Review). Chapter 2 (Blanchard, Macroeconomics / Blanchard, Macroeconomics-A European Perspective) Goods and Financial Markets: The IS-LM Model Chapter 5 (Blanchard, Macroeconomics / Blanchard, Macroeconomics-A European Perspective)
2		The IS-LM model in an Open Economy (Part 1) Chapter 18/19 (Blanchard, Macroeconomics) OR Chapter 6 (Blanchard, Macroeconomics-A European Perspective)
3		The IS-LM model in an Open Economy (Part 2) Chapter 18/19 (Blanchard, Macroeconomics) OR Chapter 6 (Blanchard, Macroeconomics-A European Perspective)
4		The Labour Market Chapter 6 (Blanchard, Macroeconomics) OR Chapter 7 (Blanchard, Macroeconomics-A European Perspective)
5		Mid-term exam
6		Putting All Markets Together: The AS-AD Model (Part 1) Chapter 7 (Blanchard, Macroeconomics) OR Chapter 8 (Blanchard, Macroeconomics-A European Perspective)
7		Putting All Markets Together: The AS-AD Model (Part 2) Chapter 7 (Blanchard, Macroeconomics) OR Chapter 8 (Blanchard, Macroeconomics-A European Perspective)
8		The Phillips Curve Chapter 8 Par. 8.1-8.2 (Blanchard, Macroeconomics) OR Chapter 9 Par. 9.1-9.2 (Blanchard, Macroeconomics-A European Perspective) Economic Policy in an Open Economy Chapter 19 (Blanchard, Macroeconomics) OR Chapter 18 (Blanchard, Macroeconomics-A European Perspective)
9		Exchange Rate Regimes Chapter 21 (Blanchard, Macroeconomics) OR Chapter 19 (Blanchard, Macroeconomics-A European Perspective)
10		The crisis of 2007-2010 Chapter 20 (Blanchard, Macroeconomics-A European Perspective) OR General review