Intermediate Macroeconomics

Module code: ECN202

The purpose of this module is to provide students with a thorough analysis of the intermediate macroeconomic theory concerning aggregate expenditure functions, expectations, inflation, economic growth and open-economy macroeconomics.

Aims of the module

The aims of the module are:

  • to build upon students' first-year knowledge of macroeconomics
  • to provide an in-depth analysis and appreciation of the major themes in intermediate macroeconomic theory
  • to examine the policy implications of macroeconomic theory
  • to enhance students' ability for critical thinking and confidence in economic analysis

Learning objectives

On completion of the course students will have:

  • a greater understanding of current economic theory
  • acquired further analytical skills for examining macroeconomic models
  • a greater understanding of the link between the theory and empirical work

Syllabus

Basics: IS-LM model, labour market, AS-AD model

Inflation and unemployment: natural rate of unemployment, the Phillips curve

Expectations: how are the expectations formed, role of expectations – in the financial markets, in the goods market (consumption and investment), and in policy

Open economy: openness in the goods market and the money market; exchange rates: nominal and real; balance of payments; Marshall-Lerner conditions; policy in open economy; Mundell-Fleming model; exchange rate regimes

Growth – economics of long run: what is growth?; facts about growth; the Solow (neo-classical) growth model; technological progress and growth

Policy: monetary policy rules, inflation targeting, intertemporal budget constraints

Teaching methods

One (one-hour) lecture per week throughout the academic year; four workshops and three tutorials every semester

 

Assessment

Unseen three-hour examination worth 100% of the total mark which takes place at the end of semester two

Basic reading

We advise you not to buy books before the module begins, as the reading list may change. If you wish to read in advance, look for these texts in the University library

Blanchard, O; Amighini, A; Giavazzi, F (2013) Macroeconomics: A European Perspective, 2nd edition, Prentice Hall

Prerequisites ECN130 and either ECN118, ECN119 or equivalent MAS units

Module leader Gurleen Popli

Please note that the leader may change before the module begins

Semester Academic year

Credits 20