Upon successful completion of the course, students are expected to develop fundamental knowledge regarding:

• Economic fluctuations and macroeconomic policy in a general equilibrium environment with price and wage rigidities
• The transmission of macroeconomic shocks
• Fluctuations in unemployment
• Conventional macroeconomic policies
• The liquidity trap and unconventional macroeconomic policies

1. Introduction: Measuring the Business Cycle
2. Aggregate Demand with Ricardian and Keynesian Consumers
3. Aggregate Supply: Monopolistic Competition, Labor Market, Natural Equilibrium, Price Rigidity
4. General Equilibrium of Aggregate Demand and Aggregate Supply
5. The Transmission of Macroeconomic Shocks: Demand and Supply Shocks
6. Unemployment Fluctuations: Flows, Beveridge Curve, Search, Matching, Equilibrium Unemployment, Macroeconomic Equilibrium with Wage Rigidity
7. Monetary Policy: Inflation Expectations, Yield Curve, Interbank Market, Taylor Rule and Taylor Principle
8. Optimal Monetary Policy Based on a Central Bank Loss Function
9. Expectations, Credibility, and the Effectiveness of Monetary Policy
10. Fiscal Policy in General Equilibrium, Government Spending and Tax Multipliers
11. Liquidity Trap
12. Unconventional Monetary Policy
13. Fiscal Policy and Reforms in a liquidity trap

Lectures (3 hours per week)

The language of assessment is Greek, and the assessment method consists of a final individual examination through a process of Multiple-Choice Questions, Short-Answer Questions, and Problem Solving.

Optional (individual or group) assignment-presentation (adds up to +2 points)

Optional midterm/progress test (adds up to +1 point)

The course syllabus, sample analytical questions, laboratory exercise assignments, course assessment criteria, as well as other teaching/learning material are posted on the e-class platform and are accessible to all students.

Use of IT in teaching and in communication with students (e-class)