1770 Foundations in Macroeconomics
Dr. Fabian Siuda
Contact details
  • Type
  • Weekly hours
  • Language of instruction
09/06/21 to 09/21/21
Registration via LPIS
Notes to the course
Subject(s) Bachelor Programs
Day Date Time Room
Thursday 10/14/21 10:30 AM - 12:30 PM TC.4.01
Thursday 10/21/21 10:30 AM - 12:30 PM TC.4.01
Thursday 10/28/21 10:30 AM - 12:30 PM TC.4.01
Thursday 11/04/21 10:30 AM - 12:30 PM TC.4.01
Thursday 11/11/21 10:30 AM - 12:30 PM TC.4.01
Thursday 11/18/21 10:30 AM - 12:30 PM TC.4.01
Tuesday 11/23/21 10:00 AM - 10:45 AM Online-Einheit
Thursday 12/02/21 10:30 AM - 12:30 PM Online-Einheit
Thursday 12/09/21 10:30 AM - 12:30 PM Online-Einheit
Thursday 12/16/21 10:30 AM - 12:30 PM Online-Einheit
Thursday 12/23/21 10:30 AM - 12:30 PM Online-Einheit
Thursday 01/13/22 10:30 AM - 12:30 PM TC.4.01
Thursday 01/20/22 10:30 AM - 12:30 PM TC.4.01
Monday 01/24/22 08:30 AM - 10:00 AM Ort nach Ankündigung


Macroeconomic concepts:

  • The Goods Market: Which are the components of demand?
  • Financial Markets: What happens if the ECB changes its interest rate?
  • The Labor Market: Which role does collective bargaining play in different countries?
  • Inflation and Deflation: Is there really a negative relation between inflation and unemployment?
  • Balance of Payments: What might be the results of a persistent current account deficit?


Economic Policy:

  • Monetary and Fiscal Policy: Under which circumstances may fiscal policy increase production? In which cases is monetary policy more suitable? Where are the limits to these policy measures?
  • Exchange Rates: Under which circumstances should an economy adopt a fixed exchange rate regime? When are flexible exchange rates more suitable? What are the implications of a devaluation?


  • Shocks to Demand and Supply: What were the consequences of the increase in oil prices in the 1970ies? Which are the effects of fiscal consolidation on output? How can a recession be counteracted?
  • Exchange Rate Crises: How can rumors trigger an exchange rate crises?
  • Financial Crisis: What were the macroeconomic implications of the decline in house prices in the US in 2006 and the bankruptcy of Lehman Brothers?

Learning outcomes

After completing this course you will be able to…

  • describe and graphically depict central macroeconomic relationships for closed and open economies
  • to analyze the effects of various economic policies (e.g. government expenditure increases, interest rate decreases, exchange rate regimes) using the theoretical models taught in this course
  • to recognize macroeconomic concepts in other contexts (e.g. economics news, business plans) and to draw adequate conclusions

Additionally, this course enhances...

  • analytical skills
  • the capacity to depict complex relationships by simple models and to derive action plans
  • reasoned phrasing
  • the ability to interpret graphs
  • handling of numerical data
  • time management

Attendance requirements

Mandatory Attendance:

  • two missed units are tolerated (communication not necessary, no "apology")
  • more than two missed units: only if the reason is serious (please contact the lecturer!)

The course is an on-campus course. Distance participation is only possible in exceptional cases (such as COVID quarantine).

Teaching/learning method(s)

Teaching and learning methods:

  • traditional lectures using slides and whiteboard
  • active in-class involvement of students, e.g. in-class discussions, in-class excercises and mini-quizzes
  • students' self-guided reading as preparation for each class + homeworks
  • written exams
  • slides and exercises will be uploaded on learn@wu; material for reading will be specified on learn@wu  



Points to achieve (max. 100):

  • 20 points: active participation (Quizzes, Homework,...)
  • 20 points: mid-term exam
  • 60 points: final exam

Grading schedule:

  • as of 50 points: Sufficient
  • as of 63 points: Satisfactory
  • as of 75 points: Good
  • as of 88 points: Excellent

Additional prerequisites for a positive grade:

  • at least 24 points in the final exam 
  • at least 15 points in active participation and mid-term exam

Final exam:

  • The final exam will take place in the January exam week (the mid-term exam will take place in the mid-term exam week)
    There is no alternative!
  • If the final exam is missed for important reasons (e.g. disease) it must be accompanied by written proof and sent to the lecturer via mail before the exam starts. There will an opportunity to take the final exam before the next term starts.
  • If the overall score is negative: Repetition of final exam before the next term starts is possible upon the lecturers decision, if at least 18 points were obtained on the first try of the final exam.
  • It is not possible to retake the exam with an already positive grade

Prerequisites for participation and waiting lists




1 Author: Blanchard, Olivier


Publisher: Pearson
Edition: 8
Remarks: The WU library offers on-line access to the E-book version (Please use the 8th edition, since previous editions are different in core chapters.)
Year: 2021
Content relevant for class examination: Yes
Recommendation: Essential reading for all students
Type: Book

Recommended previous knowledge and skills

Solid knowledge of Contemporary Challenges in Business and Economics

Solid knowledge of Foundations in Microeconomics

Availability of lecturer(s)

after the course meetings; or by appointment; or by mail:

Last edited: 2021-09-30