Macroeconomics: Topics in Theory for Policy - ECO00042H
Module summary
This module enables third year undergraduate students to access a set of advanced topics in modern macroeconomic theory.
Related modules
Module will run
| Occurrence | Teaching period |
|---|---|
| A | Semester 1 2023-24 |
Module aims
The purpose of this advanced undergraduate module is to provide adequate foundations in modern macroeconomic theory so that students are able to grasp the nuances of various policy debates.
It approaches macroeconomics from the perspective of general equilibrium and information economics as this allows the analysis to be founded in terms of economic fundamentals at the level of the decision maker.
Term 1 starts with the Solow model of growth, and then considers the Ramsey model where the decision regarding how much to save is endogenised. Various applications and adaptations of the model are then considered including the analysis of fiscal policy in a dynamic setting with perfect foresight.
Term 2 concentrates attention on three issues: intergenerational trade, social security and capital formation studied within the framework of an overlapping generation model with production, the efficiency wage approach and the search approach to labour markets, and credit markets and the role of liquidity and collateral in the economy.
Module learning outcomes
On completing the module a student will be able to:
-
Understand some modern macroeconomic models with micro-foundations
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Comment on some policy debates in macroeconomics
Indicative assessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 90 |
| Essay/coursework | 5 |
| Essay/coursework | 5 |
Special assessment rules
None
Indicative reassessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 90 |
Module feedback
Feedback will be provided in line with University policy
Indicative reading
Blanchard, O. and Fischer, S., Lectures is Macroeconomics, MIT Press, 1989
Romer, D., Advanced Macroeconomics, McGraw-Hill, 5th ed., 2019
Freixas, X. and Rochet, J.-C., Microeconomics of Banking, MIT Press, 1997