Unit information: Macroeconomic Analysis in 2019/20

Unit name	Macroeconomic Analysis
Unit code	EFIM20037
Credit points	20
Level of study	I/5
Teaching block(s)	Teaching Block 1 (weeks 1 - 12)
Unit director	Dr. Marion Prat
Open unit status	Not open
Pre-requisites	In 2019/20: Economic Principles 1 (EFIM10010) and Economic Principles 2 (EFIM10019) as well as Mathematical and Statistical Methods (1) (EFIM10008) From 2020/21: The Economy (EXIMxxxx) and Mathematical and Statistical Methods (1) (EFIM10008)
Co-requisites	None
School/department	School of Economics
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

The unit will take a modern look at the macroeconomy, incorporating both recent insights into how the economy works and also pedagogical concerns that macroeconomics has become too mathematical. Students will understand both that (i) macroeconomic models are simplifications of a complicated economy and also; (ii) that such models are only provisionally correct, since they are dependent on empirical verification.

The main topics to be studied will be:

(i) the determinants of long-run economic growth and productivity and income differences between countries;

(ii) the components of aggregate demand - investment and consumers’ expenditure;

(iii) the consequence of market failures in credit and labour markets for macroeconomic behaviour;

(iv) the operation and efficacy of fiscal and monetary policy in developed economies.

(v) the workings of the international monetary system and the organisation of trade

Intended Learning Outcomes

Students will be able:

1. To have a basic understanding of how macroeconomic models work and to sketch the derivation of such models;
2. To use economic models to answer hypothetical questions about the operation of the macroeconomy and to draw appropriate policy conclusions;
3. To compare and contrast competing theories of the macroeconomy and to understand the logic of different views of the economy;
4. To understand the conclusions/measurement problems and methods used (albeit without a technical knowledge) by empirical papers in macroeconomics and to evaluate economic models.

Teaching Information

The course is taught using large group lectures as well as classes. There will be 36 hours of large group lectures (or exercise lectures) and 9 hours of small group classes.

Assessment Information

Summative assessment:

[1] 25% Essay (1500-2000 words), which assesses all learning outcomes.

[2] 75% 2 hour Final Exam in January Exam Period, which assesses all learning outcomes.

Reading and References

Carline and Soskice (2014): Macroeconomics: Institutions, Instability, And The Financial System

Dani Rodrik (2015): Economic rules. The rights and wrongs of the dismal science.