Macroeconomics 3 (MakØk3) - Business Cycles and Monetary Stabilization Policies

Course content

The Basic New-Keynesian Model. Monetary stabilization policy in the New Keynesian Model. Credibility issues in stabilization policy. Sticky wages and prices and stabilization policy. Open economy. Applications: Unconventional monetary policy; fiscal policy at the zero lower bound.


MSc Programme in Mathematics-Economics

Learning outcome

Knowledge within:

  • the scope and limits of macroeconomic stabilization policy with an emphasis on monetary policy
  • welfare rationales for stabilization policies


Skills at:

  • understanding of the scope and limits of macroeconomic stabilization policy with an emphasis on monetary policy
  • solving basic versions of modern theoretical models of the business cycle
  • understanding the economic mechanisms at work in the mathematical models.


Competences to:

  • addressing real-life policy issues using the methods used in the course.

6 hours of combined lecturing and exercises per week for 7 weeks.

Makroøkonomi 1 (MakØk1) and Makroøkonomi 2 (MakØk2)

Academic qualifications equivalent to a BSc degree is recommended.

7,5 ECTS
Type of assessment
On-site written exam, 3 hours under invigilation
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship

Same as ordinary exam.
If 10 or fewer students have signed up for re-exam, the type of assessment will be changed to a 20-minute oral exam with no preparation time.

Criteria for exam assessment

The student should convincingly and accurately demonstrate the knowledge, skills and competences described under Intended learning outcome.

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 161
  • Exam
  • 3
  • English
  • 206


Course number
7,5 ECTS
Programme level
Full Degree Master

1 block

Block 2
No limitation – unless you register in the late-registration period (BSc and MSc) or as a credit or single subject student.
Study Board of Mathematics and Computer Science
Contracting department
  • Department of Mathematical Sciences
Contracting faculty
  • Faculty of Science
Course Coordinator
  • Christoffer Jessen Weissert   (6-75717a3a3d40497c6a766f37747e376d74)
Saved on the 14-02-2024

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