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Unit information: MRes Macroeconomics 2 in 2018/19

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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
Pre-requisites

None

Co-requisites

None

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

Description

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

There are two lectures and one exercise class per week. Coursework will consist of 2 assignments.

Lectures will introduce and explain the different concepts and methods as well as their application and limitation whereas exercise classes will provide the opportunity to practice the selection and use of these methods.

Contact Hours Per Week 3

Student Input

20 hours lectures

10 hours tutorials

15 hours preparation of assignments for assessment

3 hours final exam

102 hours individual study

Assessment Details

Summative assessment: 3-hour written exam (85%), 2 assignments on the various topics (15%).

The exam will test the knowledge, selection, application and evaluation of tools and methods.

The two assignments will consist mostly of problem-solving questions, and are of a length similar to a three hour exam. The second assignment will also require students to give a 30 minute presentation in groups of 2-3, for which students will receive a group mark. The assignments will incentivize the students to learn to use, apply and evaluate these methods as well as computational software while getting feedback on their progress.

The exam and the second assignment test ILOs 1 and 2. The first assignment tests ILOs 1 and 3.

Formative assessment: class participation and discussion in tutorials. These will provide further opportunities for feedback on the students’ progress.

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.

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