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Unit information: Macroeconomics with Extended Essay in 2020/21

Unit name Macroeconomics with Extended Essay
Unit code EFIM30053
Credit points 30
Level of study H/6
Teaching block(s) Teaching Block 1 (weeks 1 - 12)
Unit director Dr. Marion Prat
Open unit status Not open




School/department School of Economics
Faculty Faculty of Social Sciences and Law


This unit is only available for student on the Graduate Diploma

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.
  5. To synthesize 1., 2., 3., and 4., in an holistic way.

Teaching details

Teaching will be delivered through a combination of synchronous and asynchronous sessions such as online teaching for large and small group, face-to-face small group classes (where possible) and interactive learning activities

Assessment Details

Coursework (26.67%) consisting of 5.334% groupwork, 21.334% individual work; Coursework (40%); extended essay (33.33%)

Reading and References

  • Carlin and Soskice (2014): Macroeconomics: Institutions, Instability, And The Financial System
  • Dani Rodrik (2015): Economic rules. The rights and wrongs of the dismal science.