This course introduces a modern approach to macroeconomics by building on microeconomic principles. To be able to rigorously address key macroeconomic questions a general framework based on intertemporal decision making is introduced. Starting by the principles of consumer and firm behavior, this framework is successively expanded by introducing market imperfections, monetary factors as well as international trade. With this framework at hand students are able to analyze labor market policies, government deficits, monetary policy, trade policy, and other important macroeconomic problems. Throughout the course, we not only point out the power of theory but also its limitations.

Language: English

Literature and lecture slides will be provided in the corresponding ILIAS course.