ECON2004 - Macroeconomic Theory and Policy

Terms 1 & 2



Aims:

To provide students with a thorough understanding of core concepts and methods of macroeconomics as a foundation for subsequent study of macroeconomic topics within the degree programme, and as one of the key elements in the professional training of an economist.

Objectives:

At the end of the module, students should:

  • Understand theories of macroeconomics at a level appropriate for an economics graduate
  • Understand macroeconomic models, and be able to solve and interpret problems based on such models at a level of difficulty appropriate for an economics graduate
  • Be able to use macroeconomic concepts and methods to analyse and interpret real-world macroeconomic phenomena, and to assess issues of macroeconomic policy
Taught by:
 Liam Graham, Wendy Carlin
Assessment: There will be 40 hours of lectures in all (20 in each term). Other teaching will be a mixture of demonstration classes (5 in each term) and compulsory smaller-group tutorial classes (6 in each term) with accompanying exercises. There will be a single 3-hour unseen written examination for the whole course in Term 3.
Suitable for:
 Compulsory for 2nd year Economics (L100), Econ/Geog (LL17), Phil/Econ (VL51) and 3rd year Math/Econ G1LC) students.
Prerequisites: ECON1001: Economics.
Moodle page:
 ECON2004 Term 1, ECON2004 Term 2

For Affiliates:

This full year course is also split into two single term courses ECON2005 and ECON2006. Students may take ECON2005 and ECON2006 as single term courses with the permission of the Affiliate Student Tutor but are advised to check with their home university that this option fulfils the requirements of the home degree program.

ECON2005 - Closed Economy Macroeconomics


Aims:

To provide students with a thorough understanding of core concepts and methods of macroeconomics, as a foundation for subsequent study of macroeconomic topics within the degree programme, and as one of the key elements in the professional training of an economist.

Objectives:

At the end of the course, students should:

  • understand theories of macroeconomics at a level appropriate for an economics graduate;
  • understand macroeconomic models, and be able to solve and interpret problems based on such models at a level of difficulty appropriate for an economics graduate;
  • be able to use macroeconomic concepts and methods to analyse and interpret real-world macroeconomic phenomena, and to assess issues of macroeconomic policy.
Taught by:
 Liam Graham, Wendy Carlin
Assessment:

20 hours of lectures plus a mixture of 5 demonstration classes and 6 compulsory smaller-group tutorial classes.  Assignments will include problems, essays and presentations.  
Assessment will be by examination.  Students will take a 2-hour written examination at the end of Term 1.
Suitable for:
 Students may take ECON2005 with the permission of the Affiliate Student Tutor but are advised to check with their home university that the single term option will fulfil the right requirement in their home degree program.
Prerequisites: Introductory Microeconomics
Introductory Macroeconomics
Moodle page:
 ECON2004 Term 1

ECON2006 - Open Economy Macroeconomics

Aims:
To provide students with a thorough understanding of core concepts and methods of macro-economic theory and policy for the open economy.

Objectives:
By the end of the course, students should:

  • understand theories of open-economy macroeconomics, at a level appropriate for an economics graduate;
  • understand macroeconomic models with special relevance to the current account, exchange rates and capital flows, and be able to solve and interpret problems based on such models at a level of difficulty appropriate for an economics graduate;
  • be able to use macroeconomic concepts and methods to analyse and interpret real-world macroeconomic phenomena, and to assess issues of macroeconomic policy, for an open economy.

Content:
Balance of payments accounts.  Exchange rates, competitiveness and the Marshall–Lerner condition.  IS/LM analysis in the open economy: the Mundell–Fleming model.  Exchange rate expectations, including overshooting.  Inflation and unemployment in the open economy.  Supply shocks.  Policy analysis in the open economy: exchange rate as policy instrument, fiscal policy, supply-side policies.  Applications to macroeconomic performance and policy in Europe and to European Monetary Union.


Taught by:
 Wendy Carlin
Assessment: Exposition in lectures will be mainly verbal and diagrammatic, with some use of mathematics where appropriate.  There will be a strong emphasis on students securing a thorough intuitive understanding of the processes being analysed.

20 lectures plus a mixture of demonstration and smaller-group tutorial classes. Assignments will include problems, essays and presentations.  Assessment will be by examination.  Students will sit a 2-hour written examination in Term 3.
Suitable for:
 Students may take ECON2006 with the permission of the Affiliate Student Tutor but are advised to check with their home university that the single term option will fulfil the requirements of their home degree program.
Prerequisites: Introductory Microeconomics
Introductory Macroeconomics
A thorough knowledge of closed-economy macroeconomics at the level of Blanchard, ‘Macro-economics’, Third Edition, Chapters 1–17 and 22–26 will be assumed throughout. 
Moodle page:
 ECON2004 Term 2