Year of entry: 2018
Course unit details:
|Unit level||Level 2|
|Teaching period(s)||Semester 2|
|Available as a free choice unit?||Yes|
See course Blackboard pages.
|Unit title||Unit code||Requirement type||Description|
The aims of this course are:
- To introduce students to macroeconomic theory and policy analysis at an intermediate level.
- To develop critical analysis and lay the foundation for macroeconomics courses in the final year.
To provide the employability skills of describing macroeconomic events and key global issues to non-economists with confidence.
At the end of this course successful students should be able to demonstrate an understanding of:
- The main macroeconomic variables.
- The classical, Keynesian and alternative approaches to macroeconomic modelling.
- The IS-LM model for closed and open economies.
- The AS-AD model.
Inflation, unemployment and the Phillips curve.
- Key macroeconomic concepts and ‘stylized’ facts. Discussion of differing approaches to macroeconomic modelling.
Flexible Price (Classical) Macroeconomics:
- The determination of aggregate output, employment and interest rates, and the effectiveness of macroeconomic policy, under the assumption of flexible prices.
- A comparison of the classical and heterodox approaches to macroeconomic stabilization policy.
Sticky-Price (Keynesian) Macroeconomics:
- The determination of aggregate output, employment and interest rates, and the effectiveness of macroeconomic policy, under the assumption of sticky prices.
- Introduction to short-run economic fluctuations.
- The IS-LM model; the AS-AD model.
- Applying the IS-LM model to the financial crisis of 2008.
Open Economy Macroeconomics:
- Nominal and real exchange rates and exchange rate regimes.
- The Mundell-Fleming model and the effectiveness of macroeconomic policy under alternative nominal exchange rate regimes.
- The pathology of currency wars and global imbalances.
Aggregate Supply and the Short-Run Trade-off Between Inflation and Unemployment:
- Microfoundations of price and nominal wage stickiness.
The expectations-augmented Phillips curve and the natural rate of unemployment.
Teaching and learning methods
Lectures and tutorial classes.
- Analytical skills
- Problem solving
- Past exam papers.
- Tutorial feedback.
- Office hours.
- Revision sessions.
- Discussion boards.
- Mankiw (2009). Macroeconomics, 8th Edition, Worth Publishers, New York.
Blanchard, Amighhini and Giavazzi (2010). Macroeconomics – A European Perspective, 1st Edition, Pearson Education.
|Scheduled activity hours|
|Assessment written exam||1.5|
|Independent study hours|