This course covers advanced topics in macroeconomic theory at the intermediate level that goes beyond the elementary macro topics covered in 3.20332. In addition, it cover topics in international monetary and financial aspects.
Macro topics include Classical and Keynesian models of income and employment, IS-LM model, use of monetary and fiscal policy for achieving internal and external balances, theory of inflation and unemployment, further discussion on consumption, investment, demand for money, money supply, and PNG's macroeconomic policy pattern.
International topics include balance of payments settlements and adjustments, exchange rate policies (fixed, flexible, managed float), PNG's exchange rate policy, international liquidity and IMF mechanism. All topics are studied with reference to PNG and similar economies with emphasis to both theory and policy.
Text:
- R., Fischer, S., and Startz, R. Macroeconomics, McGraw Hill, 9th edition.