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?

Crisis:

• Shocks to Demand and Supply: What were the consequences of the increase in oil prices in the 1970's? 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?

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

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!)

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 on ....................................................
  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

Solid knowledge of Contemporary Challenges in Business and Economics

Solid knowledge of Foundations in Microeconomics

after the course meetings; or by appointment; or by mail: mahdi.ghodsi@wu.ac.at