Module Information

Module Identifier
EC31120
Module Title
Advanced Topics in Macroeconomics
Academic Year
2017/2018
Co-ordinator
Semester
Semester 1
Pre-Requisite
Reading List
Other Staff

Course Delivery

Delivery Type Delivery length / details
Lecture 22 x 1 Hour Lectures
Seminar 5 x 1 Hour Seminars
 

Assessment

Assessment Type Assessment length / details Proportion
Semester Exam 3 Hours   Unseen written examination  Written examination  80%
Semester Assessment Coursework 1,500 words  Coursework: 1500 words  20%
Supplementary Exam 3 Hours   Unseen written examination  Written examination  Repeat failed element  80%
Supplementary Assessment Coursework 1,500 words  Repeat failed element  20%

Learning Outcomes

On successful completion of this module students should be able to:

* Distinguish between main schools of macroeconomic thought, evaluate their methodoligical differences, and critically assess their differences in policy recommendations;

* Compare models of efficiency wages and insider-outsiders, and explain how they contribute to real wage rigidity and unemployment;

* Analyse theories of nominal price rigidity, and whether they can explain economic fluctuations;

* Demonstrate an understanding of the various models of exchange rate determination and relationships between the exchange rate and macroeconomy;

* Evaluate the role and importance of international financial institutions, and critically appraise their functions.

Aims

Macroeconomics is a dynamically developing discipline. Therefore, there is a need to expand the topics of discussion from time to time, enabling us to introduce economics students to more advanced contemporary topics in macroeconomics, most of which will be based on influential theoretical as well as empirical research papers published in top economics journals. This will also introduce students to a range of research methods, which will facilitate development of appropriate analytical and research skills.

Brief description

The module presents some advanced macroeconomic models and theories, such as Keynesian, Monetarist, and new Keynesian approaches to economics, real business cycle theory, main macroeconomic models of exchangerate determination, and some new and emerging topics such as the debate about the international financial architecture.

Content

Introduction: Keynesian, Monetarist, and New Classical Approaches to Economics

  • Underemployment equilibrium in Keynesian models
  • Orthodox monetarist school and the quantity theory of money
  • New classical macroeconomic models
New Keynesian Approach to Economics

  • Sticky prices and menu costs
  • Efficiency wages
  • Insider bargaining power and hysteresis
  • Policy implications and criticisms of new Keynesian approach
Real Business Cycle Theory

  • Transition from monetary to real business cycle theory
  • Real business cycles: theory, empirical evidence, and the critique
  • Policy implications and criticisms of the real business cycle theory
Open Economy Models

  • Purchasing power parity and uncovered interest rate parity: their importance and potential problems
  • Basic monetary model of exchange rates
  • Dornbusch sticky price model of exchange rate overshooting
  • Reform of international financial architecture

Module Skills

Skills Type Skills details
Application of Number Although the module does not directly involve estimating macroeconomic models, it require students to understand and interpret results from various macroeconometric models.
Communication Discussion-based seminars facilitate independent and critical thinking about macroeconomic issues. This helps to develop good presentation skills. Independent work on assessed coursework helps to develop writing skills which will be of use when writing reports of different nature for various audiences and purposes.
Improving own Learning and Performance Students will improve their learning by undertaking directed but independent study and work. Time management will be crucial in preparation for the assessments.
Information Technology The use of electronic journals is highly relevant for the successful preparation of the coursework. In addition, although not required, students may choose to use electronic databases and statistical packages in their courseworks.
Personal Development and Career planning The module provides content which may prove highly valuable for many students in their future career. Knowledge and understanding of contemporary macroeconomic issues and their analysis, as well as research skills developed in connection with the preparation of assessed individual coursework contribute to transferable skills.
Problem solving By introducing a variety of advanced topics in macroeconomics, the module enables students (i) to develop creative thinking approaches to problems solving and (ii) to critically evaluate potential solutions to complex and challenging macroeconomic problems.
Research skills Students will be mostly working with influential theoretical as well as empirical research papers published in top economics journals. This will introduce them to a range of research methods, which will facilitate development of appropriate research skills necessary to produce high quality analytical reports.
Subject Specific Skills Students develop analytical and research skills necessary to analyse various contemporary issues in macroeconomics.
Team work Although team work ethics are encouraged in seminar discussions, there is no specific requirement involving team work.

Notes

This module is at CQFW Level 6