Content, progress and pedagogy of the module

This module introduces students to the main ideas, debates, and models of Heterodox Macroeconomics, offering a pluralistic understanding of how modern economies function beyond the assumptions of standard neoclassical theory. The course aims to give students both a historical overview of macroeconomic thought and a critical understanding of alternative schools such as Post-Keynesian, Kaleckian, Marxian, and Institutional economics. It serves as an essential complement to the standard macroeconomic sequence, deepening students’ analytical, interpretative, and evaluative skills in economic reasoning.

In the first part, students will revisit the key elements of mainstream macroeconomic models such as IS-LM, WS-PS, and AD-AS frameworks (and their evolutions) to identify their conceptual foundations and limitations. Building on this basis, the course introduces heterodox perspectives on income distribution, effective demand, and the dynamics of capital accumulation. Students will engage with historical and contemporary debates on the role of fiscal and monetary policy, the state, and financial institutions in stabilizing or destabilizing the economy.

In the second part, the module will focus on heterodox analyses of macroeconomic instability, financialization, and globalization. Students will explore topics such as wage-led versus profit-led growth, capital mobility, the Tobin tax, and monetary sovereignty, with an emphasis on how these frameworks interpret real-world events like financial crises, inequality, and global imbalances. Through theoretical discussion, empirical case studies, and data-based exercises, students will learn how different paradigms propose distinct explanations for macroeconomic fluctuations and policy design.

The pedagogical approach combines lectures and guided discussions designed to develop both conceptual understanding and critical thinking. Students will be encouraged to compare theoretical paradigms, assess their policy implications, and reflect on the relevance of heterodox approaches for addressing current economic challenges. The course emphasizes active learning also through group debates, policy simulations, and written assignments that integrate theory and empirical evidence.

By the end of the module, students will be equipped to critically assess competing macroeconomic models, connect theory to contemporary policy debates, and articulate informed perspectives on how alternative macroeconomic frameworks can contribute to more equitable and sustainable economic outcomes.

Learning objectives

Knowledge

Learning objective – Knowledge: The objective is that the student after the module possesses the necessary knowledge on:

• The historical evolution of macroeconomic thought culminating in the contemporary debate between mainstream and heterodox approaches.
• The structure and assumptions of mainstream neoclassical models such as IS-LM, WS-PS, and AD-AS and its evolution.
• The heterodox critique of these models, focusing on income distribution, effective demand and the role of government, central banks, and global finance.
• Theoretical debates around wage competition, capital mobility, Tobin tax, and monetary sovereignty.

Skills

Learning objective – Skills: The objective is that the student after the module possesses the necessary skills in:

• Critically analyzing and comparing mainstream and heterodox macroeconomic frameworks.
• Applying theoretical models to interpret contemporary macroeconomic issues such as globalization, inequality, and financial crises.
• Evaluating policy alternatives from both neoclassical and heterodox standpoints, including fiscal, monetary, and trade policies.
• Synthesizing empirical evidence and theoretical insights to develop coherent arguments regarding macroeconomic stability and distributional outcomes.

Competences

Learning objective – Competences: The objective is that the student after the module possesses the necessary competences in:

• Independently engaging with diverse schools of macroeconomic thought and articulating critical reflections on their implications for policy and society.
• Demonstrating the ability to assess the macroeconomic effects of financial globalization, capital control, and speculative behavior.
• Formulating informed opinions on the role of state intervention, central banking, and wage dynamics in an open economy.
• Integrating heterodox perspectives into broader economic reasoning, supporting pluralistic and reflective economic analysis.

Type of instruction

For more information see §17.

Exam

Exams