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.


Students understand key macroeconomic concepts and can use basic models of economic growth, labour markets and goods and money markets to analyse the effects of monetary and fiscal policies on key macroeconomic variables.

Credits: 6

Schedule: 11.01.2022 - 22.02.2022

Teacher in charge (valid for whole curriculum period):

Teacher in charge (applies in this implementation): Niku Määttänen

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

CEFR level (valid for whole curriculum period):

Language of instruction and studies (applies in this implementation):

Teaching language: English. Languages of study attainment: English


  • valid for whole curriculum period:

    Key macroeconmic concepts and models e.g. national accounting, long-run growth, wages and unemployment, interest rates, goods and money markets, IS-TR-IFM-model.

  • applies in this implementation

    OUTLINE (subject to minor changes)

    Capital accumulation, technological progress, and the labour share of output

    ·        Solow growth model

    ·        Competitive capital and labour markets

    ·        Structural change

    Related book chapter (Burda&Wyplosz, 7. ed.): 3

    Externalities, imperfect competition, and growth

    ·        Endogenous growth, AK-model

    ·        Automation/robotisation

    ·        Climate and the macroeconomy, intro to IAMs

    Intertemporal choices

    ·        Intertemporal budget constraints

    ·        Consumption smoothing

    ·        Ricardian equivalence

    ·        Bond prices and interest rates

    ·        Cost of owner housing

    Related book chapters: 6-8

    Labour supply decisions and labour market flows

    ·      Income taxation vs. lump-sum taxation

    ·      Job creation, job destruction, and unemployment

    Relate book chapter: 4

    Demographics, growth, and social security

    ·        Two-period OLG model

    ·        PAYG vs. fully funded social security

    ·        Dynamic (in)efficiency

    Money, nominal price level, and exchange rates

    ·        Quantity theory of money

    ·        Zero lower bound and the liquidity trap

    ·        Purchasing power parities

    ·        Nominal and real exchange rates

    Related book chapter: 5

    Banks and money creation

    ·        Bank’s balance sheet

    ·        Lending and money creation

    ·        Limits to money creation

    ·        Bank runs and bank regulation

    ·        Quantitative easing

    Related book chapters: 9-10

Assessment Methods and Criteria
  • valid for whole curriculum period:

    Exam, exercises

  • valid for whole curriculum period:

    lectures, exercises and preparation


Study Material
  • valid for whole curriculum period:

    Burda&Wyplosz, Macroeconomics a European text, Oxford University.

  • applies in this implementation

    The course material consists of lectures slides, problem sets and selected chapters (see the outline above) of the textbook (Burda&Wyplosz).

    Some of our topics are not included in the textbook. Also the lectures complement the lecture slides in many ways. For instance, in the lectures we often draw graphs that are not  in the lecture slides.

Substitutes for Courses
SDG: Sustainable Development Goals

    8 Decent Work and Economic Growth


Further Information
  • valid for whole curriculum period:

    The courses Intermediate Macroeconomics I and Intermediate Macroeconomics II replace the course 31C00200 Makrotaloustiede.

    Teaching Period:

    2020-2021 Spring III

    2021-2022 Spring III

    Course Homepage:

    Registration for Courses: In the academic year 2021-2022, registration for courses will take place on Sisu ( instead of WebOodi.