Aims

To equip the student with intermediate-level macroeconomic concepts, and develop students' problem-solving abilities in the context of macroeconomics.

This is the core second-year module in macroeconomic analysis. It is a pre-requisite for several final-year modules in Economics. At a broad level, it is the study of the economy as a whole; and the module focuses on developing skills in macroeconomic analysis that could be applied to any economy in the world. A key emphasis is placed on understanding the relevance of different frameworks for different contexts. The concepts of short run, medium run and long run are central to this process; as is the distinction between open and closed economy modelling. There is also an emphasis on helping students understand contemporary policy-making issues. For example, students have the opportunity to develop knowledge and understanding of a (medium run) macroeconomic framework typical of that used in central banks to support contemporary monetary policy design; and attention is given to preparing students for thinking about fiscal policy and the sustainability of a fiscal stance. The material builds on principles of macroeconomics typically covered in Stage 1 studies and Term1 material in the co-requisite module Economic Modelling, but it is conducted at greater depth and with a much greater reliance on analysis, mainly diagrammatic, but with some mathematics. It is a core module, as it covers the economic techniques that are essential to modern economic analysis at Stage 3 of economics programmes.

Outline Of Syllabus

The demand side – recap of the IS curve
The supply side – the labour market and unemployment
The 3 equation model
Expectations
Money and banking, the financial sector and crises
The 3 equation model in the open economy
Monetary and fiscal policies.

Teaching Rationale And Relationship

Lectures provide an in-depth treatment of the core course material; and incorporate student engagement with guided analysis. They will provide the structure through which learners develop familiarity with and understanding of a range of macroeconomic models and frameworks.

Seminars facilitate small group interaction with peers and the seminar leader to reinforce learning: seminar worksheets structure the student learning activity prior, during and after each seminar. The seminars will support learners to identify appropriate models for the analysis of particular contexts and undertake macroeconomic analysis.

Seminars provide each learner with the opportunity to obtain feedback on their understanding to date; and resources made available on Blackboard after seminars provide material for self-assessment of student understanding.

Drop-in/Surgery to deal with specific problems experienced by students and provide a forum for consolidation of understanding.

Private study facilitates review and understanding of lecture material and problem sets.

Assessment Rationale And Relationship

The unseen examination is designed to encourage study and test understanding across a range of macroeconomic topics. Student learning and development of analytical skills tends to build and mature over time. End of session summative assessment should give learners maximum opportunity to develop their analytical skills before being formally assessed – and will test their understanding on exit from the programme of learning.