Module description
What is the module about?
This second-year course provides students with a theoretical and practical understanding of macroeconomics. The first part of the course develops and builds on the IS-LM in both closed and open economy. The model is then used to study monetary and fiscal policy in different exchange rate regimes model. The second part of the course introduces students to microfoundations in Macroeconomics. It discusses the labour-leisure choice, intertemporal consumption-saving decisions, and more.
Who should do this module?
Students interested in obtaining an understanding of:
• the main concepts and models of macroeconomics, both graphically and algebraically;
• models’ relation to empirical evidence and world events;
• how economists apply those models to study the effects of fiscal and monetary policies on the key macroeconomic variables;
• the challenges that policy-makers face in the aftermath of the Great Recession, along with the policy responses to tackle the economic consequences of the Covid-19 pandemic;
• the tools necessary to master the material of third year compulsory (or optional) courses with macroeconomic content.
Provisional Lecture Outline
Lecture 1: IS-LM model in closed economy
Lecture 2: Introduction to open economy
Lecture 3: IS-LM model in open economy
Lecture 4: Microfoundations, labour-leisure choice
Lecture 5: Labour-leisure choice (continues)
Reading Week
Lecture 6: Consumption-saving decision
Lecture 7: Consumption-saving decision (continues)
Lecture 8: Decisions under uncertaity
Lecture 9: Decisions under uncertaity (continues)
Lecture 10: Fiscal Policy and Monetary Policy
Assessment details
80% Examination
20% Mid Term
Teaching pattern
Weekly Lecture
Weekly Tutorial
Suggested reading list
Key Textbooks
• Blanchard, Olivier (2021). Macroeconomics, 8th Edition (Global), Pearson Education Limited.
• Williamson, Stephen (2018). Macroeconomics, 7th Edition (Global), Pearson Education Limited.