DEC-22306 Macroeconomics & Policy


Credits 6.00

Teaching methodContact hours
Group work12
Independent study
Course coordinator(s)dr. JG Klomp
Lecturer(s)dr. JG Klomp
Examiner(s)dr. JG Klomp

Language of instruction:


Assumed knowledge on:

ECH-10406 Microeconomics and Behaviour; DEC-21806 Macroeconomics and International Trade.

Continuation courses:

Advanced Macroeconomics


This course deals with the subject of macroeconomics for a closed economy. It establishes the major determinants of national income, unemployment, and inflation and investigates the policies that can improve the macroeconomic performance of a national economy. The focus is on both theory and policy. Topics are: how can we stabilise the short-run fluctuations of an economy? How can we promote economic growth? How can we fight inflation, or reduce unemployment? In addition, the course deals with the major social-economic problems and recent developments of the Dutch economy and a number of related government policies, all within a European setting.

Learning outcomes:

After successful completion of this course students are expected to be able to:
- analyse the most important determinants of economic growth, inflation and unemployment for a closed economy in both the short and long run;
- applying basic exogenous and endogenous growth models for studying the economy in the long run;
- applying basic aggregate supply and demand models, (new)-Keynesian and real business cycle models for studying the economy in the short run;
- analyse the economic effects of fiscal and monetary policy for the closed economy in both the short and long run;
- analyse the function of the labour market and different parts of the financial system (stock market, banking market and bond market);
- apply the method of comparative statics using graphs and simple linear mathematical models.


- hearing lectures on the course materials;
- practicals in which students make exercises on the course materials and write and present a paper.


- reports on 2 assignments, each 15%;
- written exam with open questions (70%).


An additional reader with papers and other chapters which will made available through Blackboard.

Compulsory for: BEBEconomics and GovernanceBSc6MO