|| EC30320 |
|| MACROECONOMIC BEHAVIOUR AND SYSTEMS |
|| 2004/2005 |
|| Mr Bruce Morley |
|| Semester 2 (Taught over 2 semesters) |
|| EC10120 , EC10910 , EC10320 |
|| EC34510 |
| Course delivery
|| Lecture || 20 Hours |
|| Seminars / Tutorials || 6 Hours |
|Assessment Type||Assessment Length/Details||Proportion|
|Semester Exam||2 Hours ||80%|
|Semester Assessment|| 2 pieces of coursework||20%|
|Supplementary Assessment||2 Hours examination and /or resubmission of coursework||100%|
Learning outcomesOn 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 EC30810, Topics in Macroeconomics.
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
Consumption/ Investment Functions
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.
Miles, D, and A. Scott (2001) Macroeconomics; Understanding the Wealth of Nations
Mankiw, N.G. (2000) Macroeconomics
4th Edition. Worth
Pentecost, E (2000) Macroeconomics: An Open Economy Approach
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
This module is at CQFW Level 6