319014 Macroeconomics 1a (V) (WiSe 2025/2026)

This course consists of Macroeconomics 1a (319014), Macroeconomics 1b (319017) and the Tutorial (319019).

In the process of this course (Macro 1a) students will get familiar with the principles of intertemporal optimization in the context of optimal consumption and saving choices. They will also learn how the optimal consumption path depends on consumer preferences and market environment. Furthermore, this course will contribute to the understanding of analytical approaches to modeling growth of the key economic indicators. Special attention will be given to the interaction between capital and labour markets and its consequences for unemployment. The models of endogenous growth will be accompanied by the discussion of social welfare and policy implications. Therefore, students will develop the ability to understand and interpret macroeconomic growth models and discuss their strengths, limitations and empirical relevance.

The second part of the course (Macro 1b) offers an introduction into the topic of monetary economics and policy. The students will learn the basics about the central bank and money creation. Next, the New Keynesian framework will be introduced to familiarize the students with the benchmark policy models and goals of the central bank, in particular the Taylor principle. Finally, the lecture will present three modern policy issues that became prominent after the 2008 Great Recession: systemic risk in the banking sector; interactions of monetary and fiscal policies; and quantitative easing and tightening.

For more details see the Syllabus in the "Lernraum".