Course Details/Schedule

Day 1

• Introduction and gross domestic product
• Macroeconomic aggregates
• The components of GDP
• Real and nominal GDP
• GDP deflator

Day 2

• Savings and Investment in a closed economy
• The market for loanable funds
• Labor market
• The natural rate and the cyclical unemployment
• Consumer price index

Day 3

• Price indices and relative prices 
• Trends in relative prices 
• Output and real interest rates 
• Philips curves
• Exchange rate (UIP)

Day 4

• Monetary policy rule
• Foreign block
• Money, monetary system and inflation
• Fiscal and monetary policies
• The money demand

Day 5

• The theory of liquidity preference
• The impact of monetary policies on the aggregate demand
• Fiscal policies and the multiplier effect
• Fiscal policies and the crowding-out effect
• The argument for and against the use of fiscal and monetary policy

Day 6

• Applying the model for policy analysis
• Calibration and data
• Applying the model for macro forecasting
• In–sample forecasting properties
• Out–of-sample forecasting

Day 7

• Vector autocorrelations
• Impulse response functions and analysis
• Forecast error variance decompositions
• Historical decompositions

Day 8

• Open economies and trade balances
• Capital flows
• The relationship between savings, investment, and capital flows in open economies
• Nominal and real exchange rate

Day 9

• Economics fluctuation 
• Aggregate demand
• The forces affecting growth, inflation, and unemployment
• National study of demand and supply
• Short and long run aggregate supply curve

Day 10

• Forecasting procedure
• Forecasting results
• Time series forecasting
• Additive model
• Multiplicative models