Module Identifier EC30810  
Academic Year 2007/2008  
Co-ordinator Dr Kobil Ruziev  
Semester Semester 2  
Other staff Mrs Sangeeta Khorana  
Pre-Requisite EC30320  
Course delivery Seminars / Tutorials   4 Hours.  
  Lecture   11 Hours.  
Assessment TypeAssessment Length/DetailsProportion
Semester Exam1.5 Hours  80%
Semester Assessment 1 piece of coursework20%
Supplementary Assessment1.5 Hours examination and/or resubmission of coursework100%

Learning outcomes

On successful completion of this module students should be able to:
Through lecture presentation, seminar discussion and reading (see below) you should grasp a firm understanding of recent work by economists to explain the importance of the exchange rate to the domestic economy and how it relates foreign economies to the domestic economy and what causes exchange rates to "overshoot" their long-run levels. You should also be able to explain the sources of rigidities in the economy and their role and importance in explaining unemployment and macroeconomic fluctuations. Specifically you should gain a working understanding of the following topics:

From these you should also be able to gain an understanding of how the open economy operates and how particular 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.

Brief description

This module presents some advanced macroeconomic models and theories, concentrating on the main open economy models and the new Keynesian approach to economies.


The module aims to teach more advanced topics in the macroeconomic analysis of the open economy and economic fluctuations. Students will be taught the main models of exchange rate determination and the macroeconomic implications of "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.


Transferable skills

Reading Lists

** Recommended Text
Abel, Andrew Macroeconomics Addison-Wesley 0201504286
Abel, Andrew and Bernanke, Ben (2000) Macroeconomics 4th edition. Addison Wesley Longman
Burda, Michael Macroeconomics edition 3r.e. . Oxf.U.P. 0198776500
Mankiw, N Gregory and Romer, David (eds) (1991) New Keynesian Economics, Vols 1 and 2 MIT Press
Mankiw, N.Gregory New Keynesian Economics MIT P. 0262631334
Pilbeam, Keith (2001) International Finance
Romer, David (1996) Advanced Macroeconomics McGraw Hill
Romer, David Advanced Macroeconomics edition 2r.e. . McGraw 0072318554
** Supplementary Text
Abel, Andrew Macroeconomics Addison-Wesley 0201504286
Hoover, Kevin D. New Classical Macroeconomics edition n.e. . Blackwell 0631172637

** Recommended Text
Journal of Economic Literature
Journal of Economic Perspectives
** Supplementary Text
Journal of Economic Literature
Journal of Economic Perspectives
Oxford Review of Economic Policy


This module is at CQFW Level 6