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BAEcon Development Studies and Social Statistics

Year of entry: 2021

Course unit details:
Macroeconomic Analysis 2

Unit code ECON10182
Credit rating 10
Unit level Level 1
Teaching period(s) Semester 2
Offered by School of Social Sciences
Available as a free choice unit? No

Overview

This unit aims to:

  1. introduce students to macroeconomic theory and policy analysis at an intermediate level;
  2. develop critical analysis and lay the foundation for macroeconomic courses in the second and third year;
  3. provide the employability skills of describing macroeconomic events and key global issues to non-economists with confidence.

Pre/co-requisites

Unit title Unit code Requirement type Description
Macroeconomic Analysis 1 ECON10181 Co-Requisite Compulsory
Advanced Mathematics ECON10071 Co-Requisite Compulsory
ECON10182 Co-requisite: ECON10181 and ECON10071

ECON10181 Macro Analysis 1

 

Aims

This unit aims to:

  1. Introduce students to macroeconomic theory and policy analysis at an intermediate level.
  2. Develop critical analysis and lay the foundation for macroeconomic courses in the second and third year.
  3. Provide the employability skills of describing macroeconomic events and key global issues to non-economists with confidence.

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Learning outcomes

 


 

Syllabus

Listed below is a rough outline of the topics that will be covered in this module.
 

Lecture 1 - nominal/real exchange rates, balance of payments, uncovered interest parity, IS-LM model in an open economy

Lecture 2 - fiscal and monetary policy in the open economy IS-LM model, Marshall-Lerner condition, fixed vs flexible exchange rates

Lecture 3 - medium run adjustment under fixed exchange rates, exchange rate crises under fixed exchange rates, exchange rate volatility, benefits and costs of different exchange rate regimes

Lecture 4 - purchasing power parity, facts on growth across countries, Solow growth model with no population growth and no technological progress

Lecture 5 - Solow growth model with technological progress and population growth

Lecture 6 - present discounted values, bond prices, yield curves, relationship between short-term and long-term interest rates, arbitrage, stock prices, bubbles

Lecture 7 - two-period consumption model, investment, volatility of consumption and investment

Lecture 8 - expectations-augmented IS-LM model, liquidity traps, quantitative easing, budget deficits
 

Teaching and learning methods

Lectures and tutorial/exercise classes, independent study, group learning and online learning.

 

Knowledge and understanding

demonstrate an understanding of modern macroeconomic theory and quantitative methods to an intermediate level.

Intellectual skills

develop problem-solving skills; be able to apply analytical models; evaluate and critically analyse arguments, theories and policies; synthesize and evaluate data.

Practical skills

develop their ability to locate/process/collate data in a suitable form for analysis; develop their ability to independently locate and assess relevant literature, and to draw on these to develop understanding and to construct arguments.

Transferable skills and personal qualities

develop their ability to communicate ideas and arguments in writing, as well as manage time and work to deadlines.

Employability skills

Other
Students will develop knowledge and understanding, intellectual skills, transferable skills and personal qualities, and practical skills identified in the "Learning Outcomes" section.

Assessment methods

10% Quizes, MCQ and written throughout the term

70% Exam

20% Mid-term test

Feedback methods

  • Mock mid-term exam.
  • Mock final exam.
  • Tutorial feedback.
  • Office hours.
  • Revision sessions.
  • Discussion boards.

Recommended reading

Olivier Blanchard, Alessia Amighini and Francesco Giavazzi, Macroeconomics: A European Perspective, 3rd edition, Pearson, 2017

Study hours

Independent study hours
Independent study 0

Teaching staff

Staff member Role
Patrick Macnamara Unit coordinator

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