© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

ECON 3410/4410 International Macro and Finance

Spring 2005

Some start-up remarks

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

Course pages on the internet:

• http://www.uio.no/studier/emner/sv/oekonomi/ECON4410/v05/

– Time and place, detailed reading list,– Official announcements of examination dates will be

posted here– Click Lecture notes and handouts

to attain the work page of the course.» Lecture plan» Lecture notes, data,» Copies of slides in pdf format » etc

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

The seminars• The seminars start in week 5 (31/1 - 4/2)• The exercise set will be available from the internet

on Wednesday19th January. • The two first seminars will take you through several

“warm-up” exercises (theoretical and operational concepts, linear and log-linear model etc)

• Exercise 3-8 are meant to train you in the theory and methodology that make out the main content of the course (see for example next slipe for outline).

• Exercise 9, is an earlier exam question set.• In addition: Optional introduction to PcGive ( in

connection with ECON 4150).

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

Course-outline by topic1. Introduction to dynamic models

2. Wage and price setting

3. Models of inflation and the macroeconomy

4. Financial markets and the macroeconomy

5. Monetary policy

Follow link on homepage for detailed plan.

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

ECON 3410/4410

2. Wage and price setting

Phillips curve and battle of mark-upB&W 12

Norw model of inflation

Phillips cure versionCh 2 of IDM

General battle of mark-up versionCh2 of IDM

3. Models of inflation and the macroeconomy

Natural rate of unemploymentIt's model dependency!

Phillips curve AD-AS model

B&W 13

Short and long run version of the model

Fiscal Policy

Methodology of analysizing short and long run effects

B&W 15-17

4. Financial markets and the macroeconomy

B&W 9.1-9.7

OEM: 1 og 3.1

B&W 19

5. Monetary policyMonetary policy

OEM 3.4, 10.1

Rødseth (K)

B&W 20

Fiscal policy

1. Introduction to dynamic modelsCh 1 of IDM

Targets, instruments

Money targeting

Flexible monetary policy

OEM: Open Economoy Macroeconomics

IDM: Introduction to Dynamic Macroeconomics

B&W: Burda og Wyplosza

Rødseth (k): Kompendium article

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

The reading list

• Burda, M. and C. Wyplosz: Macroeconomics. A European Text, third edition. Oxford University Press (2001), Chap 9, 12-13, 15-17 and 19-20.

• Introductory Dynamic Macroeconomics. See home page:

http://folk.uio.no/rnymoen/rnyteach.html

• Rødseth, A: Open Economy Macroeconomics. Cambridge University Press (2000). Chap. 1,3.1, 3.4, 10.1.

• The chapter by A. Rødseth, in Christiansen A. B, and J. F Qvigstad (eds) : Choosing a Monetary Policy Target. Scandinavian University Press (1997)

See course page for details

© DEPARTMENT OF ECONOMICS

UNIVERSITY OF OSLO

Home assignment and exam• Compulsory assignment

• Week 8 or thereabout

• There will be a limit on the lenght of the term paper, in terms of pages and/or words

• The paper will be not be marked,

• In May: 3 hour school exam, graded (A-F)

• Question will be in English, but you can write in English or Norwegian (Swedish/Danish)