Module description
The global financial crisis has highlighted the importance of financial factors and income distribution for economic performance. This module introduces students to macroeconomic debates on issues of demand formation, income distribution and finance as relevant for International Political Economy at an advanced level.The first part of the class covers macroeconomic approaches that analyse the interrelation of income distribution and demand formation, in particular post-Keynesian theory, Social Structures of Accumulation and the French Regulation Theory and introduces concepts like wage-led and profit-led demand regimes,profit squeeze crises and the capital-labour accord.
It highlights historical changes in labour relations and welfare state regimes and how they impact on the macroeconomy. The second part of the module focuses on theories of finance in the economy, in particular endogenous money, financialisation and financial instability, based on the work of Keynes and Minsky. Throughout the class we present both theoretical models and empirical applications of the theories.
The module encourages students to engage with formal economic models. However, the module assumes no prior knowledge of these skills and is designed toensure that students with different degrees of analytical skills can take the module.
Assessment details
3,000-word essay - 100%
Educational aims & objectives
This module offers an advanced-level overview of the macroeconomics of demand, distribution and finance and aims to:
- Familiarise students with key debates in the intersection of macroeconomics and political economy
- Introduce students to macroeconomic modelling of demand regimes and demand formation
- Introduce students to theories of financialisation and financial instability
- Give students the skills to critically assess the empirical application of macroeconomic models
- Give students the skills to apply macroeconomic models to policy making
Learning outcomes
Upon completion of the class, students will be able to:
- Develop an argument within key debates in the intersection of macroeconomics and political economy
- Differentiate and present macroeconomic demand regimes and their application
- Explain theories of financialisation and financial instability
- Critically assess the empirical application of macroeconomic models
- Understand and critically comment on the use of macroeconomic models in policy making
This module places considerable emphasis on student employability by stressing transferable skills that are highly sought-after in both the public and private sectors. To this end, students will also learn:
- How to understand and critically engage in academic and policy debates related to the modules core content
- How to create, disseminate, and analyse macroeconomic analysis
- How to write policy reports based on macroeconomic analyses
Teaching pattern
Lecture and seminar