UCL Department of Economics


ECON3029: Advanced Macroeconomics

This module is available in Term 2


Students will be exposed to a variety of economic models that are useful to better understand the trade-offs and the conflicts that emerge from the need to coordinate fiscal and monetary policy over time. This component of the course will aim at furthering the students’ technical skills and at providing them with a framework to better understand the ultimate determinants of inflation and monetary policy. The analysis of the models will be supplemented with a discussion of actual historical experiences and institutional facts that will connect the abstract models to current and historical events.


This is an optional module for single-honours Economics and combined-studies Econ/Geog and Phil/Econ 3rd year students. The course will cover the following topics within the broad theme of interactions between monetary and fiscal policy through lectures and tutorials:

•    The relationship between government budget balance and inflation
•    The consequences of denominating government debt in a country’s own currency: the insurance properties of nominal debt
•    Time consistency of policy, and the consequences of nominal debt for a central bank’s credibility.
•    The choice of a maturity structure of government debt: fiscal or monetary policy? How the answer changed after “Quantitative Easing.”
•    The implications of central bank independence and monetary unions for inflation and fiscal policy

Taught by:
Franck Portier
Assessment: 20 hours of lectures and 4 compulsory tutorial classes with accompanying coursework. There will be a 2-hour unseen written examination in Term 3.
Suitable for:
L100: BSc (Econ) Economics, L101: BSc (Econ) Economics with a Year Abroad, LL17: BSc Economics and Geography, VL51: BA Philosophy and Economics) Final Year students.
Prerequisites: Econ1001: Economics Micro/macro and ECON2004: Macroeconomic Theory and Policy (good knowledge of open-economy macroeconomics).  Any further pre-requisites will be confirmed shortly.
Moodle page: