© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

ECON 3410, International Macro and Finance

Overview, spring 2004

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

Course pages on the internet:

• http://www.uio.no/studier/emner/sv/oekonomi/ECON4410/v04/

– Time and place, detailed reading list,– Official announcements of examination dates will be

posted here– Click Lecture notes and handouts

to attain the work page of the course.» Lecture plan» Lecture notes, data,» Copies of slides in pdf format » etc

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

The seminars• The seminars start in in week 5 (last week of

January)• The exercise set will be available from the

internet Monday 21. January. • The exercises will signal some of the essential

learning objectives.

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

The reading list

• Burda, M. and C. Wyplosz: Macroeconomics. A European Text,third edition. Oxford University Press (2001), Chap 9, 12-13, 15-17 and 19-20.

• A lecture note on Dynamic models. See home page:http://folk.uio.no/rnymoen/rnyteach.html

• Rødseth, A: Open Economy Macroeconomics. Cambridge University Press (2000). Chap. 1,3.1, 3.4, 10.1.

• DeGrauwe, P : Economics of Monetary Union.• The chapter by A. Rødseth, in Christiansen A. B, and J. F

Qvigstad (eds) : Choosing a Monetary Policy Target. Scandinavian University Press (1997)

See course page for details

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

How do we approach the main books?

B&W: Lectures will be critical and research-based:

• Why are the issues and topics of the book important• What are the strengths and weaknesses of the

analysis in the book (i.e., “the models”).OEM:

Lectures will aim to help learning the book’s approach to the modelling of the market for foreign exchange

DeGrauve: Here the aim is to get an overview of main topics

and lines of argument in the book.

Mainly “self-study”.

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

The topics of the course1. Introduction to dynamic models

2. Wage and price setting

3. Models of inflation and the macroeconomy

4. Financial markets and the macroeconomy

5. Macroeconomic policy

6. International monetary system

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

Mid term paper/home assignment

• The assignment is to be completed and delivered within x (working) days.

• There will be a limit on the lenght of the term paper (in terms of words)

• The paper will be marked, the mark will count the final evaluation, but less than the school exam (40%).

• Further details are fortcoming.

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UNIVERSITY OF OSLO

Introduction to dynamic models

1. Static and dynamic models, and their interpretation in macroeconomics

2. Concepts of dynamic analysis.– Adjustments lags– Short-run and long-run– Steady state– Impact multiplier, dynamic multiplier, long-run multiplier

Reading:• Lecture note: Dynamic models, sections 1-7.

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UNIVERSITY OF OSLO

Wage and price setting

1. The Phillips curve.

2. The Norwegian model of inflation,

3. “The battle of mark-ups”

Reading:• Lecture note “Dynamic models”, section 8• B&W chapter 12.

Note: You will need to “browse” trough earlier chapters in order to obtain familiarity with notation and concepts which are taken as given in ch 12.