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School of Social Sciences

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BAEcon Economics
Learn how the social sciences can help you to understand today's world.

BAEcon Economics / Course details

Year of entry: 2018

Course unit details:
Macroeconomic Analysis 2

Unit code ECON10182
Credit rating 10
Unit level Level 1
Teaching period(s) Semester 2
Offered by School of Social Sciences
Available as a free choice unit? No

Overview

See course Blackboard pages.

Pre/co-requisites

Unit title Unit code Requirement type Description
Advanced Mathematics ECON10071 Pre-Requisite Compulsory
Macroeconomic Analysis 1 ECON10181 Pre-Requisite Compulsory

This course unit is for BA Econ, BSc Econ and PPE students only.

NOT available to students who have previously taken ECON10041/42 or ECON10081/82.

Aims

This unit aims to:

  1. Introduce students to macroeconomic theory and policy analysis at an intermediate level.
  2. Develop critical analysis and lay the foundation for macroeconomic courses in the second and third year.
  3. Provide the employability skills of describing macroeconomic events and key global issues to non-economists with confidence.

.

Learning outcomes

At the end of this course unit, it is expected that you will:

  • Demonstrate an understanding of modern macroeconomic theory and quantitative methods to an intermediate level.
  • Develop problem-solving skills.
  • Be able to apply analytical models.
  • Be able to evaluate and critically analyse arguments, theories and policies.
  • Be able to synthesize and evaluate data.
  • Develop your ability to locate/process/collate data in a suitable form for analysis.
  • Develop your ability to independently locate and assess relevant literature, and to draw on these to develop understanding and to construct arguments.
  • Develop your ability to communicate ideas and arguments in writing.
  • Enhance time management and ability to work to deadlines.


 

Syllabus

Weekly Schedule:

 

Lecture 1 (Chapter 6 in textbook):

  • Nominal/real exchange rates.
  • Balance of payments.
  • Uncovered interest parity.
  • IS-LM model in an open economy.

 

Lecture 2 (Chapter 7 in textbook):

  • Fiscal and monetary policy in the open economy IS-LM model.
  • Marshall-Lerner condition.
  • Ffixed vs. flexible exchange rates.


Lecture 3 (Chapter 12 in textbook):

  • Medium run adjustment under fixed exchange rates.
  • Exchange rate crises under fixed exchange rates.
  • Exchange rate volatility.
  • Benefits and costs of different exchange rate regimes.


Lecture 4 (Chapters 13-14 in textbook):

  • Purchasing power parity.
  • Facts on growth across countries.
  • Solow growth model with no population growth and no technological progress.


Lecture 5 (Chapter 15 in textbook):

  • Solow growth model with technological progress and population growth.


Lecture 6 (Chapter 16 in textbook):

  • Present discounted values, bond prices, yield curves, relationship between short-term and long-term interest rates, arbitrage, stock prices, bubbles.


Lecture 7 (Chapter 17 in textbook):

  • Two-period consumption model.
  • Investment.
  • Volatility of consumption.


Lecture 8 (Chapter 18 in textbook):

  • Expectations-augmented IS-LM model.
  • Liquidity traps.
  • Quantitative easing.
  • Budget deficits.

Teaching and learning methods

Lectures and tutorial/exercise classes, independent study, group learning and online learning.

 

Employability skills

Other
Students will develop knowledge and understanding, intellectual skills, transferable skills and personal qualities, and practical skills identified in the "Learning Outcomes" section.

Assessment methods

Method Weight
Other 30%
Written exam 70%

Final Exam - multiple choice questions and short written answers (70%):

  • The final exam will consist of 20 multiple choice questions and two questions requiring short written answers.
  • It will cover all material covered in the course unit.

 

 Blackboard Quizzes - multiple choice and numeric response questions (10%):

  • There will be 8 quizzes that students must complete using Blackboard.  Each quiz will correspond to one of the 8 lectures. 
  • Since each of the tutorials also corresponds to one of the 8 lectures, the quiz will always be due at 11:59 PM the day before the associated tutorial.
  • The lowest quiz score will be dropped, so that the best 7 quiz scores will count for 10% of a student’s final mark.

 

Midterm Exam - multiple choice questions (20%):

  • The midterm exam will take place during the time of lecture.
  • It will consist of 20 multiple choice questions, and will cover material from the first four lectures and the associated chapters in the textbook.

 

For information about feedback please follow this link:
http://www.campus.manchester.ac.uk/tlso/map/teachinglearningassessment/assessment/sectionb-thepracticeofassessment/policyonfeedbacktostudents/.

Feedback methods

  • Mock mid-term exam.
  • Mock final exam.
  • Tutorial feedback.
  • Office hours.
  • Revision sessions.
  • Discussion boards.

Recommended reading

Olivier Blanchard, Alessia Amighini and Francesco Giavazzi, Macroeconomics: A European Perspective, 2nd edition, Harlow: Pearson Educated Limited, 2013.
 

Study hours

Scheduled activity hours
Assessment written exam 1.5
Lectures 18
Tutorials 8
Independent study hours
Independent study 72.5

Teaching staff

Staff member Role
Patrick Macnamara Unit coordinator

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