Credits: 6

Schedule: 07.01.2020 - 21.02.2020

Teacher in charge (valid 01.08.2018-31.07.2020): 

Seppo Honkapohja

Contact information for the course (applies in this implementation): 

teacher contact by email:

teaching assistant: Aleksi Paavola, email:

Teaching Period (valid 01.08.2018-31.07.2020): 

III Spring (2018-2019), Töölö campus

III Spring (2019-2020), Otaniemi campus

Learning Outcomes (valid 01.08.2018-31.07.2020): 

The course develops central areas of macroeconomic theory that are useful for analysis and discussion of policy making. The policy topics covered include foundations of unconventional monetary policies e.g. quantitative easing, the role of financial markets in the recent crisis, current problems and topics in the Euro area and issues in long-term economic growth. Students learn the motivations for policy analysis, become familiar with current policy concerns and acquire analytical skills for assessing these problems.

Content (valid 01.08.2018-31.07.2020): 

Formulation and use of New Keynesian models for policy making and analysis, role of financial and labor markets in macroeconomic fluctuations, the Great Recession and the problem of very low interest rates, theory of fiscal and monetary policy, analysis of long-term growth and development.

Assessment Methods and Criteria (valid 01.08.2018-31.07.2020): 

50% Exam
50% Assignment

Elaboration of the evaluation criteria and methods, and acquainting students with the evaluation (applies in this implementation): 

Exam (held on Friday February 21, 2020) is 50% of total grade.

Exercises are 30% of total grade. Written answers to all problems (6 sets) must be returned before the corresponding class. All 6 sets are graded (max grade 5 points per problem

Short essays are 20% of total grade. There are 6 essay topics with reading. They are given in the extended syllabus (see Course Announcements). Essays are short, max 2 pages. Essays can be written in pairs. Maximum 4 essays are submitted
for grading (max grade 5 points per essay)

Workload (valid 01.08.2018-31.07.2020): 

Contact teaching 24h
Exercises 14h
Essay 35h
Exam preparation and independent study 84 h
Exam 3h 

Study Material (valid 01.08.2018-31.07.2020): 

Main text: Carlin-Soskice: Macroeconomics: Institutions, Instability, and the Financial System


Other readings to be assigned

Details on the course materials (applies in this implementation): 

See the extended syllabus in Announcements for the course in My Pages.

Course Homepage (valid 01.08.2018-31.07.2020):

Prerequisites (valid 01.08.2018-31.07.2020): 

Intermediate courses in mathematical methods for economics and in econometrics

Grading Scale (valid 01.08.2018-31.07.2020): 

0 - 5

Registration for Courses (valid 01.08.2018-31.07.2020): 

For course and re-exam via WebOodi

Additional information for the course (applies in this implementation): 

See the extended syllabus in Announcements for the course in My Pages.

Details on the schedule (applies in this implementation): 

See the extended syllabus in Announcements for the course in My Pages.


Registration and further information