This is a follow up to Macroeconomics 1 (L2S3). During the previous semester, we have studied the basics of macroeconomics, focusing on a closed economy and its fluctuations in the short run and the long run. Important issues have been left aside, which we will now address: what happens in an open economy (how international trade affects an economy’s balance of trade, its currency and its fiscal and monetary policies), the consequences of a globalized, financial economy, and economic inequality.
While macroeconomics alone cannot solve all of these problems, the course will provide a few salient facts, as well as a number of simple formal models to study them in order to help understand the current debates on these topics.
- The open economy (6h)
- The balance of trade
- How currencies fluctuate
- Fiscal and monetary policies in an open economy (the Mundell-Fleming model)
- Unemployment, financial crises and other failures (4h30)
- Unemployment and the job market
- Financial Globalization and economic crises
- Economic Inequality (6h)
- Inequality and social justice
- The measure of Inequality
- How can we reduce inequality?
Mankiw, N. Gregory, Macroeconomics (10th edition), Worth Publishers, 2019 (version française chez De Boeck Université).
Krugman, Paul, The Return of Depression Economics, W. W. Norton, 2009 (version française en poche chez Points).
Akerlof, George & Robert Shiller, Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism, Princeton University Press (version française en poche chez Flammarion).
Piketty, Thomas, Capital in the 21st Century, Harvard University Press, 2014 (version française au Seuil).
Atkinson, Anthony, Inequality: What Can Be Done?, Harvard Universiity Press, 2015 (version française chez Flammarion).