Year of entry: 2022
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Course unit details:
Macroeconomic Analysis 2
|Unit level||Level 1|
|Teaching period(s)||Semester 2|
|Available as a free choice unit?||No|
This unit aims to:
- introduce students to macroeconomic theory and policy analysis at an intermediate level;
- develop critical analysis and lay the foundation for macroeconomic courses in the second and third year;
- provide the employability skills of describing macroeconomic events and key global issues to non-economists with confidence.
|Unit title||Unit code||Requirement type||Description|
|Macroeconomic Analysis 1||ECON10181||Pre-Requisite||Compulsory|
|Macroeconomic Analysis 2||ECON10182||Co-Requisite||Compulsory|
This unit aims to:
- Introduce students to macroeconomic theory and policy analysis at an intermediate level.
- Develop critical analysis and lay the foundation for macroeconomic courses in the second and third year.
- Provide the employability skills of describing macroeconomic events and key global issues to non-economists with confidence.
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
Synchronous activities (such as Lectures or Review and Q&A sessions, and tutorials), and guided self-study
Knowledge and understanding
demonstrate an understanding of modern macroeconomic theory and quantitative methods to an intermediate level.
develop problem-solving skills; be able to apply analytical models; evaluate and critically analyse arguments, theories and policies; synthesize and evaluate data.
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.
- Students will develop knowledge and understanding, intellectual skills, transferable skills and personal qualities, and practical skills identified in the "Learning Outcomes" section.
10% Quizes, MCQ and written throughout the term
20% Mid-term test
- Mock mid-term exam.
- Mock final exam.
- Tutorial feedback.
- Office hours.
- Revision sessions.
- Discussion boards.
Olivier Blanchard, Alessia Amighini and Francesco Giavazzi, Macroeconomics: A European Perspective, 3rd edition, Pearson, 2017
|Manuel Mosquera Tarrio||Unit coordinator|