Advanced Macroeconomics

Module Code ECNU312
Semester Spring
Prerequisite ECNU211 & ECNU212
Level 10
Credit Value 20
Module Co-ordinator Paul Cowell
Assessment 40% Coursework, 60% examination

MODULE INTRODUCTION, AIMS AND OBJECTIVES

This module aims to equip students with an understanding in advanced topics in macroeconomics, using canonical models and current research, with applications to the current economy where appropriate. Due to the breadth and complexity of topics covered, analysis will be mainly focused on a closed economy setting.

  • Models of economic growth – stylised facts, long-run growth models, convergence theory and alternative (endogenous) growth hypotheses
  • Unemployment – an analysis of the existence of non-zero equilibrium unemployment, including efficiency wage models and search models of unemployment

Long run topics covered are:

  • Identifying the key components of Aggregate Demand and Aggregate Supply, and understanding the formation and dynamics of inflation.
  • Extending beyond the IS-LM analysis of monetary and fiscal policy to confront problems of policy design, agent behaviour, credibility and targeting using a three equation model of monetary policy.

LEARNING OUTCOMES AND SKILLS DEVELOPED

On completion of this module, students should have knowledge and understanding of:

  •  Short run topics covered are:
  • Cross-country differences in per capita income
  • Determinants of long run GDP growth
  • Convergence and conditional convergence
  • Technology and human capital in the production function
  • Steady states and balanced growth paths
  • Endogenous growth models (research & development)
  • Explaining the existence of non-zero unemployment
  • Efficiency wage, search and matching models of unemployment
  • Short run fluctuations and the business cycle
  • Inflation expectations
  • Aggregate Supply and Aggregate Demand in the IS-MP model
  • Nominal short-run rigidities
  • Inflation in a 3 equation model
  • Monetary policy in practice – credibility, targeting, and game theory
  • Recent macro phenomena in the existing analytical framework

RECOMMENDED READING LIST

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