1. The IS-LM model.
- Interest rate as a determinant of aggregate demand.
- Goods and services market and the IS curve.
- Money market and the LM curve.
- General equilibrium in a closed economy.
- Fiscal policy multipliers.
- Monetary Policy multipliers.
2. Fiscal and monetary policies in the IS-LM model.
- Efficiency of fiscal and monetary policies: the case of „liquidity trap“.
- Efficiency of fiscal and monetary policies: the „Classical“ case.
- Partial and complete crowding-out effects of fiscal expansionary policy.
- Central bank dilemma.
- The Keynesian monetary transmission mechanism.
- Fiscal and monetary policy mix.
3. The augmented IS-LM model.
- Shortcomings of the simple version of IS-LM model.
- Term structure of interest rates.
- The yield curve as an indicator of future recessions and expansions.
- Inflation expectations, maturity premium and the interest-rate gap.
- Derivation of the ALM curve from the LM curve. IS-ALM model.
- Limitations of macroeconomic policies in the globalized financial markets.
4. Aggregate demand and aggregate supply.
- Derivation of the AD curve from the IS-LM model.
- Impact of the fiscal and monetary policies on the AD curve.
- Neoclassical model of aggregate supply. Production function as an output-employment relationship.
- Keynesian model of aggregate supply. Fixed prices and wages in the short-run.
- Friedman´s model of aggregate supply. Asymetric information in the labour market. Adaptive expectations.
- The Lucas model of aggregate supply. Imperfect information and the rational expectations.
5. The macroeconomics of imperfect competition.
- New Keynesian macroeconomics.
- Monopolistic competition and the mark-up price setting.
- Nominal rigidities. Price and wage contracts. Menu costs.
- Real rigidities. Efficiency wages. Credit rationing.
- Monopolistic competition in the long-run. Entry-exit models.
- The New Keynesian policy recommendations.
6. Unemployment and inflation.
- Original Phillips curve with wage changes and its later modifications.
- The short-run trade-off between inflation and unemployment.
- Natural rate of unemployment and the NAIRU.
- Phillips curve and the AS-AD model.
- Taylor curve - the inflation-output trade-off.
- Expected inflation, dynamic aggregate demand (DAD), and dynamic aggregate supply (DAS).
- Monetary and fiscal policies in the DAS-DAD model.
7. Consumption, investment and the business cycle.
- Simple aggregate consumption function. The Kuznets puzzle.
- The life-cycle hypothesis. The permanent income hypothesis.
- Barro-Ricardo equivalence hypothesis.
- Tobin´s „q“ theory of investment.
- Business cycles with deterministic trend. Business cycles with stochastic trend.
- The intertemporal substitution hypothesis. Real-business-cycle model with technology shocks. Endogenous money supply.
- Stylized facts of business cycles.
8. Economic Growth.
- Economic growth and economic development.
- Solow-Swan model of economic growth. Cobb-Douglas production function with constant returns to scale.
- Investment and capital depreciation. The process of capital accumulation.
- Steady-state growth and its determinants.
- Consumption-per-capita maximization. The „golden rule“.
- Empirical problems of the Solow-Swan growth model. New growth theory.
- Alternative measurement of the capital stock in an economy. Human capital.
- Endogenous technology development. R&D models.
9. The IS-LM-BP model.
- The IS function in an open economy.
- Net export function with a real exchange rate.
- The LM function under fixed and floating exchange rates.
- Interest rate spread and the net capital inflow.
- The BP curve, its components, steepness, and shifts.
- Mundell-Fleming model.
- External imbalance in the Mundell-Fleming model – adjustment under alternative exchange rate regimes.
10. Fiscal and monetary policies in the IS-LM-BP model.
- Efficiency of fiscal and monetary policies in the Mundell-Fleming model: the case of fixed exchange rates.
- Efficiency of fiscal and monetary policies in the Mundell-Fleming model: the case of floating exchange rates.
- Efficiency of fiscal and monetary policies in an economy with limited capital mobility.
- Efficiency of fiscal and monetary policies in an economy with internationally immobile capital.
- Several limitations of macroeconomic analysis in the IS-LM-BP model framework.
- Interest rate as a determinant of aggregate demand.
- Goods and services market and the IS curve.
- Money market and the LM curve.
- General equilibrium in a closed economy.
- Fiscal policy multipliers.
- Monetary Policy multipliers.
2. Fiscal and monetary policies in the IS-LM model.
- Efficiency of fiscal and monetary policies: the case of „liquidity trap“.
- Efficiency of fiscal and monetary policies: the „Classical“ case.
- Partial and complete crowding-out effects of fiscal expansionary policy.
- Central bank dilemma.
- The Keynesian monetary transmission mechanism.
- Fiscal and monetary policy mix.
3. The augmented IS-LM model.
- Shortcomings of the simple version of IS-LM model.
- Term structure of interest rates.
- The yield curve as an indicator of future recessions and expansions.
- Inflation expectations, maturity premium and the interest-rate gap.
- Derivation of the ALM curve from the LM curve. IS-ALM model.
- Limitations of macroeconomic policies in the globalized financial markets.
4. Aggregate demand and aggregate supply.
- Derivation of the AD curve from the IS-LM model.
- Impact of the fiscal and monetary policies on the AD curve.
- Neoclassical model of aggregate supply. Production function as an output-employment relationship.
- Keynesian model of aggregate supply. Fixed prices and wages in the short-run.
- Friedman´s model of aggregate supply. Asymetric information in the labour market. Adaptive expectations.
- The Lucas model of aggregate supply. Imperfect information and the rational expectations.
5. The macroeconomics of imperfect competition.
- New Keynesian macroeconomics.
- Monopolistic competition and the mark-up price setting.
- Nominal rigidities. Price and wage contracts. Menu costs.
- Real rigidities. Efficiency wages. Credit rationing.
- Monopolistic competition in the long-run. Entry-exit models.
- The New Keynesian policy recommendations.
6. Unemployment and inflation.
- Original Phillips curve with wage changes and its later modifications.
- The short-run trade-off between inflation and unemployment.
- Natural rate of unemployment and the NAIRU.
- Phillips curve and the AS-AD model.
- Taylor curve - the inflation-output trade-off.
- Expected inflation, dynamic aggregate demand (DAD), and dynamic aggregate supply (DAS).
- Monetary and fiscal policies in the DAS-DAD model.
7. Consumption, investment and the business cycle.
- Simple aggregate consumption function. The Kuznets puzzle.
- The life-cycle hypothesis. The permanent income hypothesis.
- Barro-Ricardo equivalence hypothesis.
- Tobin´s „q“ theory of investment.
- Business cycles with deterministic trend. Business cycles with stochastic trend.
- The intertemporal substitution hypothesis. Real-business-cycle model with technology shocks. Endogenous money supply.
- Stylized facts of business cycles.
8. Economic Growth.
- Economic growth and economic development.
- Solow-Swan model of economic growth. Cobb-Douglas production function with constant returns to scale.
- Investment and capital depreciation. The process of capital accumulation.
- Steady-state growth and its determinants.
- Consumption-per-capita maximization. The „golden rule“.
- Empirical problems of the Solow-Swan growth model. New growth theory.
- Alternative measurement of the capital stock in an economy. Human capital.
- Endogenous technology development. R&D models.
9. The IS-LM-BP model.
- The IS function in an open economy.
- Net export function with a real exchange rate.
- The LM function under fixed and floating exchange rates.
- Interest rate spread and the net capital inflow.
- The BP curve, its components, steepness, and shifts.
- Mundell-Fleming model.
- External imbalance in the Mundell-Fleming model – adjustment under alternative exchange rate regimes.
10. Fiscal and monetary policies in the IS-LM-BP model.
- Efficiency of fiscal and monetary policies in the Mundell-Fleming model: the case of fixed exchange rates.
- Efficiency of fiscal and monetary policies in the Mundell-Fleming model: the case of floating exchange rates.
- Efficiency of fiscal and monetary policies in an economy with limited capital mobility.
- Efficiency of fiscal and monetary policies in an economy with internationally immobile capital.
- Several limitations of macroeconomic analysis in the IS-LM-BP model framework.