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Unit information: MRes Macroeconomics 2 in 2020/21

Unit name MRes Macroeconomics 2
Unit code EFIMM0026
Credit points 15
Level of study M/7
Teaching block(s) Teaching Block 2 (weeks 13 - 24)
Unit director Dr. Yanos Zylberberg
Open unit status Not open




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


This unit aims to broaden and deepen knowledge and understanding of selected topics in macroeconomics focusing in particular on issues of short term fluctuations and the foundations for the current workhorse dynamic models. In a first part, we will study the consumer problem: intertemporal choices, consumption, asset pricing and savings under uncertainty. In a second part, we introduce firms, the labour demand side and general equilibrium dynamics. We first analyse “Real Business Cycles” models in which monetary policy is neutral. We then discuss monetary policy in a New-Keynesian framework with (nominal) price and wage rigidities. The unit aims for students to be able to use these tools while understanding their limitations and to apply them when undertaking novel research.

Intended learning outcomes

This unit follows on from MRes Macroeconomics I, and provides:

1. A thorough and in-depth treatment of important concepts in macroeconomics, and a rigorous introduction to fundamental analytic paradigms,

2. A deep understanding of the discipline (including the empirical macroeconomic literature) to be able to access the journal articles first-hand, to evaluate them critically and to start independent research projects,

3. Applications of computational software such as MATLAB to evaluate workhorse macroeconomic models.

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

online exam (85%) and coursework (15%)

Reading and References

Gali, J. Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian Framework, Princeton University Press

Romer, D. Advanced Macroeconomics, (Fourth Ed.), McGraw-Hill, 2010.