Macroeconomics

Prof. G. PAVANELLI
pavanelli@econ.unito.it

The course introduces the basic issues of macroeconomics and provides analytical models aimed at explaining, among others, the determinants of output, unemployment, inflation, interest rates and exchange rates.

1. The short run
- Equilibrium in the goods and financial markets
- The IS-LM model: its use for monetary and fiscal policy

2. The medium run
- The labour market
- The AS-AD model
- Unemployment and the Phillips curve
- Inflation, activity and nominal money growth

3. Expectations
- Expectations: the basic issues
- Financial markets and expectations
- Expectations, consumption and investment

4. The open economy
- Openness in goods and financial markets. Nominal and real exchange rates
- The goods market in an open economy
- Output, the interest rate and the exchange rate
- Exchange rate regimes

5. The long run
- The facts of growth
- Saving, capital accumulation and output

6. Pathologies
- Depressions and slumps
- High inflation

Text:
O. BLANCHARD, Macroeconomics, Fourth edition, Prentice Hall/Pearson.