Module ECON2011: Macroeconomics

Department: Economics

ECON2011: Macroeconomics

Prerequisites

• Principles of Economics (ECON1011) and EITHER Economic Methods (ECON1021) OR Calculus I (MATH1061) AND Linear Algebra I (MATH1071) AND Probability I (MATH1597) AND Statistics I (MATH1617)

Corequisites

• Microeconomics (ECON2021)

Excluded Combination of Modules

• Economic Theory (ECON2291)

Aims

• To provide students with the theoretical instruments for analysing the general equilibrium of an economy at an aggregate level, both in the short run, with a static model, and in the medium to long run, with a dynamic model.
• Real world policies and examples are introduced whenever possible to provide the necessary applied counterpart to the theoretical model being developed.

Content

• Topics, reflecting the current state of the field, may include:
• An Introduction to Modern Monetary Policy: Inflation Targeting.
• Demand and Supply in the Labour Market and the Phillips Curve.
• Rational expectations and Dynamic Inconsistency.
• The Banking and Financial sector and their relationship with the Real Economy.
• The Open Economy
• Government Debt Dynamics and Fiscal Policy Debates.
• Exogenous Economic Growth
• Empirics of Growth: Convergence and Cross-Country Income Differences
• Models of Endogenous Economic Growth
• Basics of Intertemporal Macroeconomics: Models of Consumption and Investment
• Real Business Cycles
• Introduction to the New Keynesian Model

Learning Outcomes

• Upon completion of the module, students should be able to:
• Understand the mechanism at work in the goods market, the asset market, and the labour market.
• Synthesise the interrelation of the above three markets into a single picture of the macro-economy.
• Understand the implications of different policy options.
• Compare and contrast the effects of these on the equilibrium level of key macro-economic variables.
• Analyse the dynamic structure of the economy and what limitations it places on economic policy.

• Upon completion of the module, students should be able to apply standard macroeconomic models to key Economic Policy issues

• Written Communication - e.g. through the in-person examination.
• Numeracy - e.g. by applying core mathematical and statistical skills to answer examination questions.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Teaching is by lectures and tutorials. Learning takes place through attendance at lectures, preparation for and participation in tutorials, and private study.
• Formative assessment to prepare for in-person examination.
• Summative assessment is by means of an in-person examination and continuous assessment (four online tests).

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

One written piece of work to prepare students for the summative exam.

■ Students who do not attend monitored activities shown under Teaching Methods and Learning Hours, or who fail to complete the summative or formative assessment(s) specified above, may be subject to the Academic Progress procedures defined in the University's General Regulation V, and may be required to leave the University.