This course aims to give students a framework with which to analyse the macroeconomy and macroeconomic policy. The first part of the course introduces the two workhorse models of modern macro, the real business cycle model and the dynamic new Keynesian model. The components of these models, consumption and investment; labour markets and the financial sector, are then analysed in more detail. The second part of the course uses these models to analyse economic policy. Although the main focus of the course is on developing a theoretical framework, frequent use will be made of practical examples.
By the end of the course students should be able to:
- think about macroeconomic events in a structured way
- discuss and criticise policy interventions
- contribute towards debates on the design of macroeconomic institutions
|Assessment:||Three hours of lectures per week, one practical demonstration lecture, and one weekly tutorial class throughout Term 1. Three-hour closed-book examination in Term 3. Assessment is based solely on the final examination, but a serious attempt at the problems is essential to a good understanding of the material.|
|Prerequisites:||Economics Department Approval. A note to students from outside the Economics Department interested in taking this course: prerequisites are 1) a strong Economics degree with a significant mathematical component and 2) attendance on our Maths and Stats refresher course in the first two weeks of Term 1 (see ECONG100).|