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Macroeconomics (R-Module)

Exam number: 6775

Semester: from 1st semester

Duration of the module: One semester

Form of the module (i.e. obligatory, elective etc.): Elective

Frequency of module offer: Irregularly

Prerequisites: To register for the seminar you have to send an E-Mail to until October 10, 2016.

Afterwards, you will be registered automatically by our chair in the Moodle system. You cannot enroll for this course via the Moodle system by yourself!

Capacity limit: 20 students

  • Knowledge in micro- and macroeconomics, math, statistics, and econometrics. Having basic knowledge of international macroeconomics (PPP, UIP, Mundell-Fleming model, Dornbusch model, and monetary model) is an advantage.
  • Students should have the skills to discuss macroeconomic shocks in models of the closed and open economy in a graphical, verbal, and formal way. For example, they know how to use Cramer’s rule to compute multipliers.
  • Students should be able to run and interpret OLS regressions. Knowledge of Excel or statistical software such as “R” or STATA is required.

Applicability of module for other study programmes:
Obligatory or elective in other study programmes. For further information check regulations of the study programme.

Person responsible for module: Prof. Dr. Georg Stadtmann

Name of the professor: Prof. Dr. Georg Stadtmann

Language of teaching: English

ECTS-Credits (based on the workload): 6

Workload and its composition (self-study, contact time):
Contact time (lecture, tutorials, seminar etc.) 21 h; self-study: 159 h

Contact hours (per week in semester): 2

Methods and duration of examination:

  • 60% of the final grade: an essay of around 10 pages text. The essay is due on February 28, 2017.
  • 40% of the final grade: a presentation on a meeting on December 15 and 16, 2016.

Both tasks can be done in groups of two students.

  • All students have to actively participate when a group has to present its solution. In case that a student does not take an active role in the presentation or is absent, the student can only earn 50 % of the credit of the group. 

Emphasis of the grade for the final grade: Please check regulations of the study programme

Aim of the module (expected learning outcomes and competencies to be acquired):
After successfully completing the course, students should be able to: 

Demonstrate knowledge about the models of (international) macroeconomics:

  • Have a good understanding of the models of (international) macroeconomics and their implications.
  • Have a good understanding of the assumptions characterizing each model and be able to compare models on the basis of these assumptions.

Demonstrate skills that enable students to 
  • Apply their knowledge to the reading and analysis of journal articles in the literature covered.
  • Analyze complex micro and macroeconomic problems by applying several theoretical or empirical methods.
  • Should have the skills to conclude about appropriate policy response in the different settings.

Demonstrate competences that enable students to: 
  • Apply their knowledge to other contexts, like news from the media, figures released in the press or in the statistics.
  • Describe and explain their solution of case studies in a written or oral way. 

Contents of the module:
The IS/LM-AS/AD framework in macroeconomics have been criticized by many macroeconomists, for example  Blinder (1997). An alternative framework, the BMW model, has been proposed by Bofinger et al. (2003). The BMW model is able to discuss more recent concepts of monetary policy such as interest rate rules and inflation targeting. Based on this model, many different macroeconomic questions can be analyzed. In the essay and presentation students should analyze and discuss a macroeconomic topic based on the BMW model and on additional literature. The specific topic for the essay and the presentation can be chosen in the first weeks of the course.

Teaching and learning methods:
Lecture, group discussions

Literature (compulsory reading, recommended literature):
Bofinger, Peter; Mayer, Eric; Wollmershäuser, Timo; Hülsewig, Oliver (2003): The BMW model: A new framework for teaching monetary macroeconomics in closed and open economies, Würzburg economic papers, No. 34

Bofinger, Peter; Mayer, Eric; Wollmershäuser, Timo (2006): Teaching New Keynesian Open Economy Macroeconomics at the Intermediate Level, Würzburg economic papers, No. 66

Blinder, Alan S. (1997): Is there a core of practical macroeconomics that we should all believe? American Economic Review, Papers and Proceedings, 240 – 243. 

Further information:
The program LaTeX has to be used for all written papers as well as presentations.
All solutions have to follow the structure of a scientific paper:

  • Front page, table of contents, list of figures, list of tables, list of abbreviations, variables, indices.
  • All equations have to be numbered consecutively.
  • References as usual and a list of references in the end of a paper.

Students have to follow the usual rules with respect to academic honesty. Especially, we expect that students do not use any material (Solutions from previous classes, papers written for different classes) without referencing appropriately.
Registration via E-Mail required.