This course is the first part of a two course sequence. The aim of the sequence is to make sure that the students taking the course understand the development of macroeconomic analysis in the 20th century. This particular course starts with the emergence of macroeconomics and focuses on the essentials of macroeconomic analysis.
The course begins with a description of the current state of the Turkish economy. We then turn to a discussion of the pre-Keynesian macroeconomic analysis. The controversy in the theory of capital is used to criticize the neoclassical approach. Keynesian ideas are presented as a solution to the problem of unemployment. We then turn to the assimilation process of Keynes' new ideas within the neoclassical paradigm. The course ends with a discussion of an alternative representation of Keynes' analysis.