Main variables Real side vs financial side	Main models	Macroeconomic policy
Main variables GDP: nominal, real, per capita Price indices: CPI, GDP deflator Inflation rate Unemployment rate Nominal/real variable Stock/flow variables Real side 1st accounting identity: Y= C+I+G+NX 2nd identity: S=I+G+TR-T+NX Government budget Trade balance (net exports) Lending capacity/financial need Measuring GDP: expenditure approach, income approach, value added approach Financial side Functions of money Financial assets: functions, properties, examples Interest rates as rates of return Relationship between interest rate and price of financial assets / justifications: arbitrage, present value, equalization of rates of return Meaning of the nominal interest rate i Discount factor Monetary aggregates: M0, M1, M2 Monetary base, money stock Money multiplier: formula and money creation process	Model 1: loan market model Central bank Monetary policy tools Relationship between i and M1 Demand for loans Supply of loans Equilibrium (nominal) interest rate Real interest rate Fisher equation, Fisher effect Model 2: currency market model Nominal exchange rate Appreciation/depreciation Demand for € Supply of € Equilibrium (nominal) exchange rate Fixed vs floating exchange rate regime Revaluation/devaluation Spatial arbitrage Triangular arbitrage Arbitrage vs speculation Currency market intervention Currency crisis Impossible trinity Real exchange rate & competitiveness Purchasing power parity (PPP) theory Over/undervaluation of the exchange rate wrt its PPP value Model 3: AS-AD model Business cycle: basic facts Typology of variables: procyclical, leading, coincident, lagging... Okun's law Phillips curve Aggregate supply: definition, slope, changes Aggregate demand: definition, slope, changes Macroeconomic equilibrium Expenditure multiplier effect Business cycle loops in the AS-AD model Role of expectations	Macroeconomic policy Economic policy: definitions and basic rule Target, instrument, indicator Problems: lags, temporal inconsistency, Goodhart's law Intervention vs no intervention Rules vs discretion Taylor's rule Supply side vs demand side policies Laffer curve Fiscal vs monetary policy Primary effects of the fiscal policy Financing government debt: more taxes now, more taxes later (bond issue now), more money issued Crowding out effect Primary effects of the monetary policy Monetary policy design Monetary policy channels: i, e, credit, stock market Classical dichotomy Neutrality of money Monetarism Quantity equation Central bank independence European Central Bank & Eurosystem Decision-making bodies of the ECB Monetary policy tools of the ECB Main refinancing operations: fixed rate, variable rate ECB interest rates