Unit information: Advanced Macroeconomics in 2014/15

Unit name	Advanced Macroeconomics
Unit code	ECONM3023
Credit points	15
Level of study	M/7
Teaching block(s)	Teaching Block 2 (weeks 13 - 24)
Unit director	Professor. Jon Temple
Open unit status	Not open
Pre-requisites	ECONM1011
Co-requisites	None
School/department	School of Economics, Finance and Management
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

This unit builds on the first-term unit to broaden and deepen knowledge and understanding of macroeconomics. Additional topics will illustrate and reinforce advanced macroeconomic theory. Topics will include advanced analysis of economic growth, monetary policy analysis, consumption, investment and unemployment and some coverage of stochastic dynamic general equilibrium models. The unit will include empirical applications of the material so that rigorous analysis is combined with applications to both econometric testing and policy analysis, ideally encouraging students to explore models using relevant computer software. The unit will contain some additional technical material to prepare students for study at PhD level, primarily in the fields of optimal control theory and/or the basic principles of dynamic programming.

Aims:

• To broaden students' knowledge and understanding of advanced macroeconomics;

• To deepen students' technical ability in advanced macroeconomics;

• To provide students with skills needed for PhD research in this area;

• To increase students' ability to undertake policy analysis within governments, central banks and research institutes.

Intended Learning Outcomes

Students will be familiar with advanced macroeconomic modelling methodologies, including models at the research frontier;

• Students will have an ability to evaluate complex modelling strategies in different contexts;

• Students will understand and be able to deploy sophisticated technical skills in macroeconomic modelling;

• Students will be able to apply techniques learned in earlier units to specific problems.

Teaching Information

Material will be delivered by lecture. This will be supplemented by small-group classes to facilitate student-led learning and to enable diagnostic assessment of their progress. Coursework will consist primarily of technical and problem-solving exercises which will be discussed in class. Classes will also be used to discuss different approaches and for student presentations.

Assessment Information

Formative assessment: exercises and presentations.

Summative assessment: closed-book exam (three hours, 100% of unit mark).

Reading and References

• Acemoglu, D. (2008). Introduction to Modern Economic Growth. Princeton University Press.

• Adda and Cooper (2003) Dynamic Economics. MIT Press, Cambridge MA.

• Bagliano, F.-C. and Bertola, G. (2004) Models for Dynamic Macroeconomics. Oxford University Press.

• Barro and Sala-i-Martin (2004) Economic Growth. MIT Press, Cambridge MA.

• Gali, J. (2008). Monetary Policy, Inflation, and the Business Cycle: An

• Introduction to the New Keynesian Framework. Princeton University Press.

• Romer, D. (2006) Advanced Macroeconomics (third edition). McGraw-Hill, New York.