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COURSE INFORMATION
Course Title: MACROECONOMICS
Code Course Type Regular Semester Theory Practice Lab Credits ECTS
ECO 206 B 4 3 0 0 3 5
Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature) NA
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours: Assoc.Prof.Dr. Nargiza Alymkulova nalymkulova@epoka.edu.al , Mondays, 13:00-16:00
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours: NA
Language: English
Compulsory/Elective: Compulsory
Study program: (the study for which this course is offered) Bachelor in Banking and Finance (3 years)
Classroom and Meeting Time: E-311, Monday, 8:45-11:30
Teaching Assistant(s) and Office Hours: NA
Code of Ethics: Code of Ethics of EPOKA University
Regulation of EPOKA University "On Student Discipline"
Attendance Requirement: 75 %
Course Description: Macroeconomics: The aim of this course is to introduce the basic concepts of macroeconomic analysis. The course presents the theory of short-run economic fluctuations which provides the basis for understanding most discussions of monetary and fiscal policy. Also the course gives ample attention to long-term topics including economic growth, the natural rate of unemployment, persistent inflation and government debt. Topics include money supply and money demand, the open economy, the theory of economic fluctuations and debates over various macroeconomic issues. Macroeconomics is a theoretical as well as an empirical discipline, motivated and guided by a wide array of experience. In line with this approach, the course is conducted on the basis of examples related to current issues in Albania.
Course Objectives: This course will teach students the basic tools of macroeconomics and apply them to real world economic policy. The goals of the course are for students to (a) understand how to evaluate macroeconomic conditions such as unemployment, inflation, and growth (b) understand how monetary policy and fiscal policy can be used to influence short-run macroeconomic conditions.By analyzing macro economic theories, discussing the validity of macroeconomic topics is the aim of this course. It is concerned with the study of real life economic issues and problems. Thus, in this course, examples from real life will be introduced to the students. The aim of the course is to develop some basic concepts and tools and be able to apply them in real life issues.
BASIC CONCEPTS OF THE COURSE
1 Gross domestic product (GDP), the total value of goods and services produced in an economy, is the broadest measure of economic activity
2 We calculate national saving by summing private saving and government saving
3 In modern economies, the two most important factors of production are labor and capital
4 Macroeconomic stabilization policies: monetary policy, fiscal policy, international trade
COURSE OUTLINE
Week Topics
1 Introduction and Syllabus Review
2 Measuring the Value of Production: GDP. In this chapter, we will study how economists define and measure the most important data in macroeconomics, areas critical to your gaining a full understanding of macroeconomics. In this chapter, we will examine the following questions: How do define GDP and explain why GDP equals aggregate expenditure and aggregate income; explain the uses and limitations of GDP as a measure of economic well-being. Chapter 4, pp.115-138.
3 Monitoring Jobs and Inflation. In this chapter, we answer to the following questions: why unemployment is a problem. And how we measure the unemployment rate and other labour market indicators; why unemployment occurs and why it is present even at full employment; why inflation is a problem and how we measure the inflation rate. Chapter 5, pp. 139-161.
4 Economic Growth. This chapter provides a framework for an understanding of the concept of economic growth. We will define and calculate the economic growth rate and explain the implications of sustained growth; describe the economic growth in different countries; explain what makes potential GDP grow; examine the sources of labour productivity growth; and examine the theories of economic growth and policies to increase its rate; Chapter 6, pp. 163-189.
5 Finance, Saving, and Investment. In this lecture, we will examine the flows of funds in financial markets, how financial decisions are made and the risks that arise from these decisions; how lending and borrowing decisions interact in financial markets; and how governments influence financial markets. Chapter 7, pp. 191-210.
6 Money, the Price level, and Inflation. This lecture will provide insights of what is money and its functions; examine the economic functions of banks; how the banking system creates money; what determines the quantity of money and the nominal interest rate; how quantity of money influences the price level and the inflation rate. Chapter 8, pp. 213-241.
7 Aggregate Supply and Aggregate Demand. In this lecture, we will examine what determines aggregate supply in the long run and in the short run; what determines aggregate demand; how real GDP and the price level are determined and what causes growth, inflation, and cycles; examine the main schools of thought in macroeconomics today. Chapter 10, pp. 273-295. Quiz 1.
8 Expenditure Multipliers and Fiscal Policy. This lecture provides an understanding of how expenditure plans and how real GDP is determined when the price level is fixed; examine the expenditure multiplier and the relationship between aggregate expenditure and aggregate demand; what fiscal policy is; the effects of fiscal policy on potential GDP and economic growth; how fiscal policy redistributes benefits and burdens across generations; and how the fiscal stimulus is used to speed recovery from recession. Chapter 11, pp. 297-350; Chapter 12, pp. 353-376.
9 Midterm Exam
10 Expenditure Multipliers and Fiscal Policy. This lecture provides an understanding of how expenditure plans and how real GDP is determined when the price level is fixed; examines the expenditure multiplier and the relationship between aggregate expenditure and aggregate demand; what fiscal policy is; the effects of fiscal policy on potential GDP and economic growth; how fiscal policy redistributes benefits and burdens across generations; and how fiscal stimulus is used to speed recovery from recession. Chapter 11, pp. 297-350; Chapter 12, pp. 353-376.
11 Monetary Policy. In this lecture we will examine the objectives of the monetary policy and framework for setting and achieving them; explain the transmission channels through which central banks influence real GDP, jobs and information; and have a look at macroprudential regulations prompted by the financial crisis of 2008. Chapter 14, pp.379-403.
12 The Exchange Rate and Balance of Payments. This lecture will provide insights on how the foreign exchange market works, what are the determinants of the exchange rate, and exchange rate policies and how currency depreciation or currency appreciation influences international trade and payments. We’re going to lay the foundation for addressing these questions by looking at the scale of international trading, borrowing, and lending and at the way in which records of international transactions are kept. Ch.15, pp. 258-267. Quiz 2.
13 Group presentations.
14 Group presentations. Review and wrap up.
Prerequisite(s): Introduction to Economics
Textbook(s): Parkin, M. (2023). Macroeconomics, 14th Global Edition, Pearson.
Additional Literature: Mankiw, G. (2021). Principles of Macroeconomics, 9th Edition, Cengage Learning, Inc.
Laboratory Work: NA
Computer Usage: Internet during class
Others: No
COURSE LEARNING OUTCOMES
1 Students will use macroeconomics knowledge to understand the macroeconomic issues
2 They will learn macroeconomic models of growth, aggregate demand, aggregate supply, open economy, and other extensions
3 They will learn about open economy with government intervention using fiscal policy
4 Students will learn the macroeconomic equilibrium using diagrams
5 They will learn how monetary policy transmission effectively stabilize the inflation
6 Students will learn the money multiplier and quantitative theory of money
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution)
No Program Competencies Cont.
Bachelor in Banking and Finance (3 years) Program
1 The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.
2 They develop their knowledge and understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.
3 They gain an understanding of the role of financial management in business firms and the essentials of corporate finance and further develop their knowledge in the field.
4 They are able to apply valuation models to estimate the price of different financial assets, measure risk and describe the risk-return tradeoff.
5 They are provided with the knowledge and understanding of the regulatory framework and functioning of banking system and central banking as well as international banking system.
6 They are able to understand and use fundamental economic theories and tools to solve economic problems in banking and financial services industry.
7 They have the ability to develop and utilize accounting, financial and economic data as well as other information to solve different business problems by making use of basic mathematical and statistical models.
8 They are expected to develop their numerical and IT skills as well as knowledge of databases in order to address the significant development in the delivery and use of financial services known as FinTech.
9 They develop their ability to think critically, do research, analyze, interpret, draw independent conclusions, and communicate effectively, both individually and as part of a team.
10 They are provided with opportunities to acquire the necessary skills and competencies to develop professionalism in the banking and financial services industry or to move on to further study within the discipline.
COURSE EVALUATION METHOD
Method Quantity Percentage
Midterm Exam(s)
1
25
Presentation
1
10
Quiz
2
5
Final Exam
1
35
Attendance
5
Other
1
15
Total Percent: 100%
ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)
Activities Quantity Duration(Hours) Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours) 16 3 48
Hours for off-the-classroom study (Pre-study, practice) 16 2 32
Mid-terms 1 10 10
Assignments 1 3 3
Final examination 1 12 12
Other 2 10 20
Total Work Load:
125
Total Work Load/25(h):
5
ECTS Credit of the Course:
5
CONCLUDING REMARKS BY THE COURSE LECTURER

Interaction during class discussions (other): students are expected to actively participate in the discussions, problem solving exercises. Furthermore, at the beginning of class first 10 minutes will be spent on discussion on economic news and their interpretation. So, students shall follow economic news to be able to discuss during the class. In this line, problems which we did not solve in class can be delivered and submitted in written form before the beginning of the next week's class. Therefore, it is a great opportunity for the students to get some points. Quizzes: There will be online quizzes after each chapter which will be conducted online and consist of multiple-choice questions. However, the aim of the quiz is to check the knowledge of what you learnt and there are no grades for them. Furthermore, there will be one offline quiz before the midterm, which will be graded. Exams: The midterm and final exams are all closed-book exams. They will consist of open questions and exercises. Only pens, pencils, erasers, and calculators are allowed to be used during exam sessions.
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