Face-to-face , second term, 45 hours of theory and 15 hours of exercises.

Second term
Monday from 09:00 to 11:00 at 109 Marais 300
Tuesday from 14:00 to 16:00 at 109 Marais 300

French

The course studies the determinants of overall economic activity (national product), employment, unemployment, interest rates, exchange rates, inflation, and their short and medium term fluctuations. It also examines the economic policies available for the government and monetary authorities to influence the evolution of these variables. Special attention is paid to an economy such as the Belgian one, which is small and widely open to the world.

Even if a significant part of the course is devoted to the presentation of theoretical explanatory models, the course will also approach the question of usefulness (and deficiency) of these models to understand the changes observed in our economies and take a position on a particular debate or economic policy decision.

This course, which remains an introduction to macroeconomic analysis, aims to provide the students with:

• the mastery of a number of key concepts of macroeconomic analysis;
• useful analysis keys to understand a wide range of current issues and (macro)economic policies;
• the required knowledge to follow the advanced macroeconomics course.

For the Bachelor in Business Engineering :

For the Bachelor in Economics and Management :

For the Bachelor in Business Engineering :

For the Bachelor in Economics and Management :

The course discusses the following topics:

1. Introduction: construction and interpretation of the main macroeconomic aggregates and of the accounting identities that link them;

2. The determinants of the household's consumption and savings;

3. The macroeconomic determinants of investment;

4. Fiscal policy and the issue of public debt

5. Monetary and financial markets and the actions of central banks

6. Macroeconomic equilibrium in the short term (i.e. with set salaries and prices of goods but possibly variable interest rates);

a. The case of a closed economy;

b. The case of a small open economy:
i. With a set exchange rate;
ii. With a flexible exchange rate;

c. The case of two important interdependent economic systems:
i. With a flexible exchange rate;
ii. With a set exchange rate;
iii. With a single currency;

7. Macroeconomic equilibrium in the medium term (i.e. with flexibility of prices and salaries):

a. Aggregate supply and aggregate demand model in a closed economy;
b. Aggregate supply and aggregate demand model in a small open economy with a set or flexible exchange rate;

For each topic listed under the points 5 and 6, we will examine the effectiveness of the instruments of economic policy (including tax and fiscal policies, monetary policy). The analysis in open economy (points 5.b and .c and 6.b) will in particular clarify the impact of the international circulation of capital and the choice of exchange systems on determinants of the domestic activity and employment, as well as the ability to lead an efficient economic policy. It will also highlight the role of price competition in an economy and its determinants.

The lecture gives a presentation of the theoretical developments and includes discussions and illustrations in reference to economic facts of the twentieth century as well as to the latest economic news.

The professor and the probationary lecturers are available for further explanations at days and hours specified at the beginning of the term.

Formative assessment: an active participation in the group sessions and the preparation of the standard questions should enable the student to evaluate his acquisition of the studied subjects.

Summative assessment: written examination (possibly completed by an oral examination) during the exam session, including theoretical questions, exercises and simple applications of the theory to problems inspired by economic reality.

A complete syllabus accompanies the course.
However, many works introducing to macroeconomic analysis can be a useful alternative.

The following documents will be made available to students:
- a syllabus containing the different chapters of the course;
- a copy of the slides used during the lecture;
- a copy of the exercise statements from the tutorials and additional notes relating to them.