AECO 12A00 - The Economy

The Economics course at the undergraduate level is an introduction to the main contemporaneous issues in economics, using both theoretical and empirical tools of inquiry. Its objectives are to introduce the core concepts and debates that structure the discipline and to familiarize students with quantitative methods for the analysis of the economy.

This course enables students to gain a better understanding of the current debates and challenges facing our societies, including in their political and social dimension such as globalization, development, inequalities, unemployment or climate change.

None

The lectures and tutorials are consistent with the “CORE Economics” teaching project. The Moodle website of this course contains the links to the relevant readings as well as all the material, pedagogical tools and problem sets of the tutorials. No further textbook is required.

The goal is to provide students with the empirical and conceptual knowledge that is necessary to understand the economy. We focus in particular on six important questions:

• What are the main issues in economics?
• How can we explain the wealth and poverty of nations and individuals?
• What are the sources of economic growth and innovation?
• How can we explain the persistence of unemployment, inflation, recessions and financial crises?
• What are the foundations of individual choices and social interactions?
• How can public policies foster social progress?
• Why does unemployment persist and why do inflation and deflation matter?
• What are the best policies to stimulate growth?
• Which policies enable to fight poverty and inequalities?
• Can fiscal and monetary policies stabilize the economy?
• What should be the ethical criteria in public policy decisions?
• Who are the main economic agents?
• Individuals: how do selfish, altruistic and ethical aspects of human behavior affect the economy? How does this affect their decisions as workers, wage earners, consumers and savers?
• Firms: what shapes the organization and behavior of firms? What is the role of competition?
• Institutions: how do institutions work? How do they contribute to economic development?
• What can markets do? (and what are they not able to do?)
• How do societies coordinate their economic activities?
• How do markets work, what are the sources of market failures?
• What is the role of the government in regulating markets and redistributing resources?
• Why are labor and credit markets different from other markets of goods and services?
• What are the costs and benefits of the global circulation of goods, capital and individuals?
• How do economists produce knowledge?
• Is economics a science, and what does that mean?
• History of economic thought: what are the main debates, why do some disagreements persist?
• How are economic theories assessed?

The final exam (3 hours, common to all students) accounts for 1/3 of the final grade; a grade for continuous assessment accounts for the remaining 2/3. A midterm exam (of the same format as the final exam) contributes to the continuous assessment..

The Moodle website contains all relevant course material, including lecture slides, readings and problem sets. Problem sets will be corrected during the tutorials. Problem sets need to be prepared prior to the TA session.