Aims

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

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. In addition, 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. The material builds on principles of macroeconomics typically covered in Stage 1 studies, but it is conducted at greater depth and with a much greater reliance on analysis, mainly diagrammatic, but with some mathematics.

In terms of skills students will develop their understanding of macroeconomic data by engaging with data visualisation, which is a key aspect of communication for an economist. Students will collect data, learn to calculate and visualise macroeconomic variables, and use these visualisations to test the theory.

Outline Of Syllabus

Economic growth - the Solow model
The demand side – recap of the IS curve.
The supply side – the labour market and unemployment.
The 3 equation model: IS-PC-MR.
Modelling expectations in the 3 equation model.
Money and banking in the 3 equation model.
The open economy.

Teaching Rationale And Relationship

Lectures provide an in-depth treatment of the core course material. They provide the structure through which learners develop familiarity with and understanding of macroeconomic modelling. They introduce Macroeconomic terminology and explain how the models work at a more intuitive level and also explain the technical side of modelling.

Seminars are focused on problem solving and applying the knowledge acquired from the lectures to some practical situations. Seminars facilitate communication with peers and the seminar leader to improve confidence and reinforce learning. Seminars provide each learner with the opportunity to obtain feedback on their understanding to date; and resources made available after seminars provide material for self-assessment of student understanding.

Pre-exam session deals with specific problems experienced by students and provide a forum for consolidation of understanding. Frequently asked questions are addressed and there is an opportunity to ask questions.

Pre-assignment session prepares students for the assessment by providing some Excel training and working through an example.

Guided independent 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. The exam tests student's problem solving ability, their knowledge of terminology and their technical ability. The exam also tests students' ability to apply complex models to real life examples and their understanding of the way in which openness affects an economy.

The formative assessment is directly linked to the exam. Students are provided with a set of problems to solve before the seminar. During the seminar they share their answers with the rest of the class and receive feedback from the seminar leader and other students. Seminars are also an opportunity to improve students' confidence in their learning strategies by working through preset questions before the seminar.

The report gives students the opportunity practice their written communication by exploring in more depth one of the topics that constitute foundations for future learning. It uses data visualisation to test students' understanding of the theory and their ability to work with macroeconomic data.