
- UCAS course code
- LN13
- UCAS institution code
- M20
Course unit details:
Macroeconomics 4
Unit code | ECON20032 |
---|---|
Credit rating | 10 |
Unit level | Level 2 |
Teaching period(s) | Semester 2 |
Offered by | Economics |
Available as a free choice unit? | Yes |
Overview
This one-semester course in international macroeconomics aims to provide students with the theoretical tools and empirical facts for understanding and thinking critically about macroeconomics in an international context. At the end of the term students will be able to interpret some key international macroeconomic policy issues, presented in policy-oriented publications and the popular press, using a new core theoretical framework where banks play a prominent role, and to understand how national macroeconomic policy challenges intersect with international economic issues – including financial globalization and the COVID-19 pandemic.
Pre/co-requisites
Unit title | Unit code | Requirement type | Description |
---|---|---|---|
Macroeconomics 3 | ECON20031 | Co-Requisite | Compulsory |
Adv Maths - BAEcon & BSc Econ | ECON10071 | Pre-Requisite | Compulsory |
Advanced Mathematics | ECON20071 | Co-Requisite | Compulsory |
ECON20032 Prerequisites: C: ECON20031 and P: ECON10071 or C: ECON20071
Aims
This one-semester course in international macroeconomics aims to provide students with the theoretical tools and empirical facts for understanding and thinking critically about macroeconomics in an international context. At the end of the term students will be able to interpret some key international macroeconomic policy issues, presented in policy-oriented publications and the popular press, using a new core theoretical framework where banks play a prominent role, and to understand how national macroeconomic policy challenges intersect with international economic issues – including financial globalization and the COVID-19 pandemic.
Learning outcomes
Knowledge and Understanding:
At the end of this course students should be able to understand:
1. Key concepts of national accounts in an open economy;
2. The functioning of the foreign exchange market and the role of interest parity conditions in determining fluctuations in national currencies;
3. How fiscal and monetary policies affect macroeconomic aggregates, including output, prices, and the current account, as well as exchange rates, in an open economy where banks play a critical role in the financial system;
4. How the globalisation of banking affects the internatinal transmission of financial shocks;
5. The benefits of international coordination of macroeconomic policies in response to global shocks, including the COVID-19 pandemic.
Syllabus
Syllabus (9 weeks)
The course will focus on the following topics:
Topic 1. National Accounts and the Balance of Payments. [1 session]
Topic 2. Exchange Rates and the Foreign Exchange Market. [1 session]
Topic 3. Macroeconomic Policies in an Open Economy: The FF-GG-XX model. [4 sessions]
Topic 4. Financial Globalisation: Global Banking, Capital Flows, and Macroeconomic Stability. [1 session]
Topic 5. International Coordination of Macroeconomic Policies. [2 sessions]
Tutorials (5 sessions, from Week 4 to Week 8)
(i) problem-solving skills; (ii) skills of analysis, and the use of analytical models; (iii) the evaluation and critical analysis of arguments, theories and policies; (iv) understand and evaluate policy-oriented publications on international macroeconomic issues. Independently locate and assess relevant literature, and to draw on these to develop understanding and to construct arguments. (i) select and deploy relevant information; (ii) communicate ideas and arguments in writing; (iii) apply skills of analysis and interpretation; (iv) manage time and work to deadlines. 20% Mid-term exam, Week 5. Online, multiple choice questions on taught material. Graded on 20 points (2 points per question). 80% Exam, June 2021. 48-hours open book exams (not timed). 2 out of 3 open questions to answer (maximum of 200 words), and a mathematical problem to solve, based on the FF-GG-XX model. Graded on 80 points (10 points per question, 60 points for the problem). Overall grade on 100 points. .Piazza, virtual office hours General References Robert C. Feenstra, and Alan M. Taylor, International Macroeconomics, 4th ed., Macmillan. 2017. Hereafter FT. Pr. P.-R. Agénor, “The FF-GG-XX Model for Macroeconomic Policy Analysis in an Open Economy,” Technical Manual, University of Manchester. Hereafter TM General References, by Topic Topic 1: FT Chapter 5. Topic 2: FT Chapters 2 and 4. Topic 3: TM (mandatory reading, except for Section 4 and Appendix). Topic 4: FT Chapter 6. Topic 5: IMF, G-20 Surveillance Note, IMF Publications (Washington DC: 2020). Beyond the Classroom: Supplementary Readings Topic 1 The US current account deficit and twin deficits https://www.imf.org/external/pubs/ft/fandd/basics/current.htm Topic 2 Monetary approach to exchange rate determination: see FT, Chap. 3. Topic 3<
For every 10 course unit credits we expect students to work for around 100 hours. This time generally includes any contact times (online or face to face, recorded and live), but also independent study, work for coursework, and group work. This amount is only a guidance and individual study time will vary.Intellectual skills
Practical skills
Transferable skills and personal qualities
Assessment methods
Feedback methods
Recommended reading
Study hours
Scheduled activity hours
Lectures
18
Tutorials
5
Independent study hours
Independent study
77
Teaching staff
Staff member
Role
Pierre-Richard Agenor
Unit coordinator
Additional notes