1664 Foundations in Macroeconomics
Mahdi Ghodsi, Ph.D.
Contact details
Weekly hours
Language of instruction
09/26/22 to 10/02/22
Registration via LPIS
Notes to the course
Subject(s) Bachelor Programs
Day Date Time Room
Thursday 10/06/22 12:30 PM - 02:30 PM TC.5.27
Thursday 10/13/22 12:30 PM - 02:30 PM TC.5.27
Thursday 10/20/22 12:30 PM - 02:30 PM TC.5.27
Thursday 10/27/22 12:30 PM - 02:30 PM TC.5.27
Thursday 11/03/22 12:30 PM - 02:30 PM TC.5.27
Thursday 11/10/22 12:30 PM - 02:30 PM TC.5.27
Thursday 11/17/22 12:30 PM - 02:30 PM TC.5.27
Tuesday 11/22/22 10:00 AM - 11:00 AM Präsenz-Prüfung
Thursday 12/01/22 12:30 PM - 02:30 PM TC.5.27
Thursday 12/15/22 12:30 PM - 02:30 PM TC.5.27
Thursday 12/22/22 12:30 PM - 02:30 PM TC.5.27
Thursday 01/12/23 12:30 PM - 02:30 PM TC.5.27
Thursday 01/19/23 12:30 PM - 02:30 PM TC.5.27
Thursday 01/26/23 02:00 PM - 04:00 PM Präsenz-Prüfung

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? Nowadays? 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; and it is subject to the WU-Corona regulations.
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 (3 out of 4 Quizzes total 15 points, Clicker questions 3 points, News Flash 2 points, ...)
  • 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 week starting with Jan 26, 2023  (mid-term exam will take place in the week starting with Nov 21, 2022) - the exact dates are not yet fixed
    There is no alternative!
    In case it is again necessary: Please be there half an hour before because of the Corona entrance check "3G"
  • 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


Midterm: Nov 22, 2022, 10:00-11:00

Endterm: Jan 26, 2023, 14:00-16:00

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: 2022-06-08