Introductory description

This module provides students with the opportunity to understand the core theoretical models used in macroeconomics, for both closed and open economies, and how to use them to enhance their comprehension of real-world macroeconomic experiences, especially involving macroeconomic policy.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The module typically covers the following topics:

Term 1 - Open Economy Macroeconomics and International Finance: Global imbalances. Current account sustainability. Intertemporal theories of the current account. Terms of trade, tariffs, and the world interest rate. Current account determination in production economies. Uncertainty and the current account. Large open economies. Fiscal deficits and the twin deficits hypothesis. Determinants of the real exchange rate.

Term 2 - Economic Growth, Business Cycles, and Macroeconomic Policy: Growth and production. The Solow growth model. Growth and ideas. Productivity slowdowns. Business cycle facts and Real Business Cycle (RBC) models. Monetary theory. Monetary policy and a Keynesian model. Inflation over the business cycle. Labour markets and unemployment. Unemployment benefits and policy issues.

Learning outcomes

By the end of the module, students should be able to:

• Subject-specific and Professional Key General Skills:...demonstrate proficiency in study and research skills such as data skills: Use of library and internet as information sources; knowledge of how to locate relevant data, extract appropriate data, analyse and present material.
• Subject-specific and Professional Key General Skills:...demonstrate proficiency in study and research skills such as mathematical/statistical skills: use/application of mathematics and diagrams in economic analysis; understanding of statistical analysis of data.
• Subject-specific and Professional Key General Skills:...demonstrate proficiency in study and research skills such as communicating their knowledge and understanding to others, verbally and in writing.
• Subject Knowledge and Understanding:...demonstrate knowledge and understanding of the core theoretical models used in macroeconomics, for both open and closed economies.
• Subject-specific and Professional Key General Skills:...demonstrate proficiency in study and research skills such as reviewing the relevant literature and evidence.
• Subject Knowledge and Understanding:...demonstrate knowledge and understanding of Economic Principles; knowledge and understanding of core concepts and methods in macroeconomics.
• Subject Knowledge and Understanding:...demonstrate knowledge and understanding of real-world macroeconomic experiences, especially those involving macroeconomic policy.
• Subject Knowledge and Understanding:...demonstrate knowledge and understanding of the relationships between different models and how to apply them in the analysis of recent macroeconomic episodes, and policy discussions affecting actual economies.
• Cognitive Skills:...demonstrate capacity of analytical thinking, reasoning and application.
• Cognitive Skills:...demonstrate capacity of critical, creative and strategic thinking.
• Cognitive Skills:...demonstrate capacity of abstraction and problem solving.
• Cognitive Skills:...demonstrate capacity of applying critical analysis to the topics of the module, formulating concepts and hypotheses, and showing how they are tested in relevant literature.

Indicative reading list

Reading lists can be found in Talis

Specific reading list for the module

International

This module analyses open economy macroeconomic issues within the context of global markets.

Subject specific skills

Applied Economics
Economic information
Economic principles
Research and debate
Abstraction
Analysis of institutions
Analytical reasoning
Analytical thinking and communication
Critical thinking
Policy evaluation
Problem solving
Sustainability

Transferable skills

Data-based skills
IT skills
Numeracy and quantitative skills
Information technology
Math, Statistical, data-based research skills
Oral communication
Written communication