Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.


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.

Credits: 6

Schedule: 11.01.2021 - 26.02.2021

Teacher in charge (valid 01.08.2020-31.07.2022): Seppo Honkapohja

Teacher in charge (applies in this implementation): Seppo Honkapohja

Contact information for the course (valid 07.12.2020-21.12.2112):

See detailed syllabus in course description.

CEFR level (applies in this implementation):

Language of instruction and studies (valid 01.08.2020-31.07.2022):

Teaching language: English

Languages of study attainment: English


  • Valid 01.08.2020-31.07.2022:

    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.

  • Applies in this implementation:

    See detailed syllabus in course description.

Assessment Methods and Criteria
  • Valid 01.08.2020-31.07.2022:

    50% Exam
    50% Assignment

  • Valid 01.08.2020-31.07.2022:

    Contact teaching 24h
    Exercises 14h
    Essay 35h
    Exam preparation and independent study 84 h
    Exam 3h 
    TOTAL 160h (ECTS)


Study Material
  • Valid 01.08.2020-31.07.2022:

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


    Other readings to be assigned

  • Applies in this implementation:

    See detailed syllabus in Course announcements

  • Valid 01.08.2020-31.07.2022:

    Intermediate courses in mathematical methods for economics and in econometrics

SDG: Sustainable Development Goals

    8 Decent Work and Economic Growth