Module Identifier EC30320  
Academic Year 2003/2004  
Co-ordinator Dr Reza Arabsheibani  
Semester Semester 2 (Taught over 2 semesters)  
Other staff Mr Bruce Morley  
Pre-Requisite EC10320 , EC10910  
Mutually Exclusive EC34510  
Course delivery Lecture   20 Hours  
  Seminars / Tutorials   6 Hours  
Assessment TypeAssessment Length/DetailsProportion
Semester Exam3 Hours  80%
Semester Assessment 2 pieces of coursework20%
Supplementary Exam Resit Exam and / or Resubmission of Coursework  100%

Learning outcomes

On successful completion of this module students should be able to:
1. Have gained a detailed understanding of how the open economy poerates, particularly with regard to exchange rate determination: The effectiveness of monetary and fiscal policy, exchange rate overshooting, capital mobility and the importance of expectations in the foreign exchange markets.

2. Be familiar with basic linear dynamic methods for analysing the behaviour of the exchange rate in the Dornbusch model and the effectiveness of policy actions, with regard to time inconsistency

3. Have an appreciation of how the theory can be applied to contemporary issues in macroeconomics, such as the european monetary system and growth theory.


The overall aim of the module is to provide students with a thorough grounding in aggregate economic behaviour at an intermediate level. This will build on the foundations provided in EC10320, Macroeconomic Principles & Models. In particular the module focuses on the theoretical explanations of how the macroeconomy works, as well as relevant policy issues. Having completed this course, you will be in a position to proceed, in your third year, to the study of EC30710, Topics in Macroeconomics.

Brief description

This module presents the core intermediate level macroeconomics, including the standard second year monetary, open economy and aggregate supply/demand topics.


Closed Economy IS/LM model
Open economy IS/LM/BP model.
Demand for Money
Aggregate Supply
Consumption/ Investment Functions
Time consistency
Growth Theory

Transferable skills

Independent work on assessed coursework requiring basic researching skills.
General economic and financial analysis of contemporary issues.
Use of the computer to assess the relevant sites on the internet such as the Bank of England.

Reading Lists

Mankiw, N.G. (2000) Macroeconomics 4th Edition. Worth
Pentecost, E (2000) Macroeconomics: An Open Economy Approach Macmillan
Dornbusch, R., Fischer, S. and R. Startz (2001) Macroeconomics 8th edition. McGraw-Hill New York
Gordon, R.J. (2000) Macroeconomics 8th Edition. Addington Wesley, Longmans
Shaw, G.K., M.J. McCrostie and D.Greenaway (1997) Macroeconomics: Theory and Policy in the UK 3rd Edition. Blackwell Oxford
Miles, D, and A. Scott (2001) Macroeconomics; Understanding the Wealth of Nations Wiley


This module is at CQFW Level 6