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 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?
• Coronavirus Crisis: Which policy measures did the ECB adopt to combat the economic consequences of the crisis? Which steps were taken by national governments?

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:

• three missed units (max. 30 % of the teaching time) are tolerated (communication not necessary, no "apology")
• more than three missed units: only if the reason is serious (please contact the lecturer!)

teaching and learning methods:

• traditional lectures
• active participation, e.g. in class discussions, individual work, practice problems and mini-quizzes
• written exams

Points to achieve (max. 100):

• 40 points: active in-class participation (Quizzes, Homework,...)
• 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 15 points in active participation --> prerequisite for the final exam 
• at least 24 points in the final exam 

Final exam:

• The final exam takes place on Friday September 27, 2024 starting at 10:30. Duration of the final exam: 70 minutes. 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 be an opportunity to retake the final exam on Thursday November 28, 2024 starting at 4 p.m..
• If the overall score is negative: Repetition of the final exam on Thursday November 28, 2024 starting at 4 p.m. is possible, if at least 6 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 Attendance:

• Due Registration
• Attendance of the first lecture: To reserve your place, you have to attend the first lecture and sign the list of participants.
• If you are not able to participate in the first lecture you have to inform the lecturer before the first lecture starts. Oherwise your place will be given to another student.

Waiting List:

• Places are allocated during the enrolment period on a first come, first served basis. 
• After the end of the enrolment period, the number of available course places will be increased and students on the waiting list, who do not have a valid course enrolment (i.e. swap requests will not be considered) will be allocated according to the following criteria: Students who are close to graduation are prioritised. After that, all students who are still on a waiting list for a course during the current semester will be allocated based on the progress of their studies.
• The Vice-Rectorate for Academic Programs and Student Affairs is responsible for the allocation process. The course instructor has no influence in this process and is not involved in this decision process.
• The places of students who don't show up in the first lecture will be given to other interested students on the waiting list (They need to be present in the lecture). The lecturer will allocate these places.
• If you registered for a course, but aren't able to participate any more, please cancel your registration electronically or write an mail to the lecturer.

Please log in with your WU account to use all functionalities of read!t. For off-campus access to our licensed electronic resources, remember to activate your VPN connection connection. In case you encounter any technical problems or have questions regarding read!t, please feel free to contact the library at readinglists@wu.ac.at.

The course builds on the lecture "Grundlagen der VWL" and "Volkswirtschaftslehre und zukunftsfähiges Wirtschaften", respectively.

Mail: oscar.fernandez@wu.ac.at