Economic Theory

The course provides an introduction to Microeconomics and Macroeconomics.

The Microeconomics course gives students an overview of the microeconomics on the undergraduate/graduate level.The literature comprises Friedma's “Price Theory” which is based on a different idea of how economics should be taught--the idea that since answers are hard to remember and easy to look up, one should instead concentrate on learning ways of thinking. The book is has two central purposes. The first is to introduce students the economic way of thinking- understanding human behavior. The second central purpose of the book is to teach students the analytical core of economics as it now exists. One of the features of economics that distinguishes it from most of the other social sciences is that it has a set of well worked out and closely related ideas that underlie almost everything done in the field. That core is price theory- the analysis of why things cost what they do and of how prices function to coordinate economic activity.

The Macroeconomics part is presented in a way that prepares students to analyze real macroeconomic data used by policy makers and researchers. It uses a unified approach based on a single economics model that provides students with a clear understanding of macroeconomics and its classical and Keynesian assumptions. The book includes illustrations of the recent crises in the United States and Europe and many new tools used by the Federal Reserve in response to the crisis. Due to the narrow time constraints the course does not endeavour to present the big picture. Rather it confines itself to a limited number of topics. The philosophy is that for IMRE students an in depth treatment of some topics is more worthwhile than a more comprehensive, but more shallow presentation of the whole field.

Literature: 

  • Abel, Andrew B.; Bernanke Ben; Croushore, D.: Macroeconomics (10th ed.). Pearson Education Limited 2021. 
  • Friedman, David: Price Theory. An intermediate Text. Cincinnati, OH: South-Western Publishing Co.1986 (1990).