UCL Department of Economics


ECON0073 - Macroeconomic Policy


This is a graduate course in macroeconomic policy. It looks at how macroeconomic policies – monetary policy and fiscal policy – affect the economy and at their roles for fluctuations in the economy. The course also considers issues of optimal policy design. The course will consist of lectures and tutorials.

This course will provide students with tools that enable them to understand the current literature and undertake independent research. The course will provide students both with skills that enable them to examine data and with tools for the analysis of modern macroeconomic models.

Students that take this course should at the end of the course be familiar with the following topics: 

  • Measurement of monetary and fiscal policy shocks and their effects; 
  • Models of monetary economies and the determination of equilibrium inflation;
  • Determinacy of the price level; 
  • Optimal monetary policy design and monetary policy rules; 
  • Ramsey optimal fiscal policies; Monetary – fiscal interaction; 
  • Liquidity traps; 
  • Monetary and fiscal policies in liquidity traps; 
  • Banking and monetary economies.

Module information video presented by Professor Morten Ravn

Taught by:Morten Ravn
Assessment:Two hours of classes per week during Term 2 and one weekly problem class. The course will be examined by a 2-hour unseen written exam in Term 3.
Suitable for:Graduate students
Moodle page:ECON0073