Course content

This course discusses how economic politics as well as other factors influence the level of activity, unemployment, inflation, and interest rates in small open economies. We also discuss problems related to the balance of trade and the foreign exchange market in regards to the Norwegian economy. Students are also introduced to theories of economic growth.

Learning outcome

Knowledge

You learn

• about the devlopment of the Norwegian and the international economy
• short run macroeconomic models relevant to the Norwegian economy; how monetary and fiscal policies affect activity levels, interest rates, exchange rates, trade, consumption, and investment
• about unemployment and inflation targeting - long run models of economic growth
• about expectations and financial markets
• about macroeconomic crises, including the financial crisis and public debt dynamics

Skills

You should be able to

• use macroeconomic models to discuss the effects of economic policies and other shocks affecting the economy
• analyze the economic situation of an economy
• relate the economic theories to the development of the Norwegian and the international economy

General competence

You should be able to

• follow economic reasoning related to the course in the public debate and professional reports

Learning methods and activities

4 hours of lectures per week, and 2 hours of exercise every other week during the teaching period. The course has compulsory activity. Specific requirements will be announced at the beginning of the term.

Compulsory assignments

• Approved Assignment(s)

Recommended previous knowledge

SØK1000, SØK1001 and SØK1002

Required previous knowledge

None.

Course materials

Announced at the beginning of the term.

Credit reductions