© DEPARTMENT OF ECONOMICS UNIVERSITY OF OSLO ECON 3410, International Macro and Finance Overview, autumn 2003

© DEPARTMENT OF ECONOMICS UNIVERSITY OF OSLO Some upcoming events: Tuesday 19/ : First lecture Introduction to the basics of the PcGive software. –Wednesday 20. august and Friday 22 august. –Room 529 Eilert Sundts hus Friday 22/8: Course in database search and download – and –Room 3529 in Georg Sverdrups hus (the library). –Look up the link and contact Pål M. Lykkja, academic librarian in economics, telephone: to sign yourself up! Late October. Presentation of Inflation report no 3, from the Central Bank of Norway

© DEPARTMENT OF ECONOMICS UNIVERSITY OF OSLO Term paper/home assignment The assignment is to be completed and delivered within 7 (working) days. There will be a limit on the lenght of the term paper (in terms of words) The paper will be marked, the mark will count the final evaluation, but less than the school exam. Further details are fortcoming.

© DEPARTMENT OF ECONOMICS UNIVERSITY OF OSLO The seminars The seminars start in in week 36 (first week of September) The exercise set will be available on Monday 25. August. The exercises will signal some of the essential learning objectives. Questions from the exercise set may re-appear in the school exam.

© 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, and A lecture note on Dynamic models. See home page: Rødseth, A: Open Economy Macroeconomics. Cambridge University Press (2000). Chap. 1,3.1, 3.4, DeGrauwe, P : Economics of Monetary Union. The chapter by A. Rødseth, in Christiansen A. B, and J. F Qvigstad (eds) : Choosing a Monetary Policy Target. Scandinavian University Press (1997)

© DEPARTMENT OF ECONOMICS UNIVERSITY OF OSLO How do we approach the main books? B&W: Lectures will be critical and research-based: Why are the issues and topics of the book important What are the strengths and weaknesses of the analysis in the book (i.e., “the models”). OEM: Lectures will aim to help learning the book’s approach to the modelling of the market for foreign exchange DeGrauve: Here the aim is to get an overview of main topics and lines of argument in the book. Mainly “self-study”.

© DEPARTMENT OF ECONOMICS UNIVERSITY OF OSLO The organization of the course 1.Introduction to dynamic models 2.Wage and price setting 3.Models of inflation and the macroeconomy 4.Financial markets and the macroeconomy 5.Macroeconomic policy 6.International monetary system

© DEPARTMENT OF ECONOMICS UNIVERSITY OF OSLO Introduction to dynamic models This week 1.Static and dynamic models, and their interpretation in macroeconomics 2.Concepts of dynamic analysis. –Adjustments lags –Short-run and long-run –Steady state –Impact multiplier, dynamic multiplier, long-run multiplier Reading: Lecture note: Dynamic models, sections 1-6.

© DEPARTMENT OF ECONOMICS UNIVERSITY OF OSLO Wage and price setting Next week 1.The Phillips curve. 2.The Norwegian model of inflation, 3.“The battle of mark-ups” Reading: Lecture note “Dynamic models”, section 7 B&W chapter 12. Note: You will need to “browse” trough earlier chapters in order to obtain familiarity with notation and concepts which are taken as given in ch 12.