This second course of the undergraduate macroeconomics sequence develops theoretical and empirical foundations of monetary economics and the aggregate functioning of an economy.
It complements the first course (focused on real aspects of macroeconomics) by developing the monetary and financial aspects of an economy, and their interaction with real variables in general macroeconomic equilibrium.
The course integrates key aspects of international financial and real integration that are relevant for macroeconomic equilibrium in an open economy.
The course also covers an intermediate-level analysis of monetary theory, the conduct of monetary policy, the differences between alternative monetary and exchange-rate regimes, and the development of financial crises.
Students are exposed to relevant macroeconomic models (and related problem sets) and related empirical evidence.
The final objective of the course is to provide students with the ability to understand the key macroeconomic issues and to apply a toolkit of models to address relevant questions related to the functioning of a modern macroeconomy.