|Module Title||TOPICS IN MACROECONOMICS 1|
|Co-ordinator||Professor Andrew Henley|
|Course delivery||Lecture||12 Hours|
|Seminars / Tutorials||4 Hours|
|Course work||One 1500 word essay||20%|
The module aims to teach more advanced topics in the macroeconomics analysis of economic fluctuations. Students will be taught the macroeconomic implications "non-competitive" or "non-optimising" forms of behaviour by households, as consumers and suppliers of labour, and by firms as price-setters and as users of labour. The module will contrast the ideal "New-Classical" world with "New-Keynesian" theories, and so address the important question of macroeconomic policy effectiveness.
Through lecture presentation, seminar discussion and reading you should grasp a firm understanding on recent work by economists to explain the source of rigidities in the economy and their role and importance in explaining unemployment and macroeconomic fluctations. You should also obtain an understanding and overview of recent work on consumption and savings and be able to understand the macroeconomicc consequences of behaviour that departs from the pure life-cycle theory. Specifically you should gain a working understanding of the following topics:
From these you should also be able to gain an understanding of how particularly types of behaviour in response to uncertainty and market imperfection lead to detrimental aggregate effects on the economy. In turn you should be able to further inform your ideas and views on the debate surrounding the effectiveness of macroeconomic policy.
The current year's module outline can be found via The School's website
David Romer. (1996) Advanced Macroeconomics. McGraw Hill
Andrew Abel and Ben Bernanke. (2000) Macroeconomics. 4th. Addison Wesley Longman
N Gregory Mankiw and David Romer (eds). (1991) New Keynesian Economics, Volumes 1 and 2,. MIT Press