This module builds on the Stage 1 teaching of macroeconomics to provide an intermediate course, which takes full account of the policy issues and controversies in the world macroeconomy.
Autumn Term considers the basic methodology of macroeconomic models and examines how macroeconomic theories of aggregate demand and aggregate supply are derived. It is important to be aware that there are many theories of aggregate demand and supply and that consideration of these theories involves studying the markets on which they are based. The Autumn Term develops and extends use of the IS-LM model to derive a theory of aggregate demand in both open and closed economies. It also scrutinises the labour market to derive a theory of aggregate supply and study the relationship between inflation and unemployment.
Spring term starts with studying the long-run, that is, what determines the standard of living of countries in the long term, as opposed to short-run economic fluctuations. It then considers microeconomic fundamentals of macroeconomics to understand in-depth the determinants of consumption, investment, and labour supply decisions. These considerations and the ideas developed in the autumn term are then used to extensively examine macroeconomic demand management policies (fiscal and monetary) and their shortcomings. Finally, we consider the role of the financial system in the macroeconomy and the causes behind some financial crises. Particular focus is given to the 2008/09 global financial crisis.
Total contact hours: 58 hours
Private study hours: 242
Total study hours: 300
This is a compulsory module for all students following both Single and Joint honours degree programmes in Economics.
This is also a compulsory module for students following Accounting and Finance and Economics, Law and Economics, and Sociology and Economics and their associated programmes.
The module is not available to students across other degree programmes in the University.
Online Test 1 (10%)
Online Test 2 (10%)
Online Test 3 (10%)
Online Test 4 (10%)
Examination, (3 hours) (60%)
Reassessment Instrument: 100% exam
*Exams will be in-person*
Burda and Wyplosz, Macroeconomics (5th or 6th ed.), OUP, 2009 or 2013
Chamberlin and Yueh, Macroeconomics, Thomson, 2006
Mishkin, Macroeconomics, Pearson, 2012
Jones, Macroeconomics (3rd ed.), Norton, 2014
Mankiw, Macroeconomics (8th ed.), Macmillan, 2013
See the library reading list for this module (Canterbury)
By the end of the module, you will be able to:
* solve simple models of the macroeconomy.
* abstract, analyse and interpret the essential features of macroeconomic models and their application.
* demonstrate analytical skills and their application to contemporary macroeconomic issues.
* engage critically with macroeconomic issues and macroeconomic policy formation.
* understand the interrelationships between different macroeconomic policies.
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