Aims

The module develops the key tools needed to model the macroeconomy in an intertemporal and micro-founded setting and understand the dynamic behaviour of the economy and the response of agents and institutions. This allows students to pursue a rigorous treatment of the most relevant contemporary macroeconomic issues and appreciate their economic policy implications.

Students should be able to reach an understanding of key macroeconomic issues and empirical facts in light of the recent and advanced macroeconomic theory. The employed approach relies on both the analysis of real-word economic phenomena and on "simple" abstraction from the real-world using analytical and mathematical tools and modelling techniques. This approach entails several benefits. Starting from certain premises which allow us to simplify a complex reality, we are able to identify the mechanisms behind the observed phenomena and arrive at predictions which can be matched against the real-world observation. Moreover, policy suggestions are then well-founded and sensible.

Outline Of Syllabus

The module covers policy-relevant macroeconomics topics such as:

Economic growth
Micro-foundations of macroeconomic models and market imperfections
Short-run fluctuations, Real business cycle model and New Keynesian macroeconomics
Contemporary issues in macroeconomic policy – fiscal and monetary policy
Contemporary issues in open economy macroeconomics.

Teaching Rationale And Relationship

Lectures provide detailed overviews. Seminars provide opportunities to go into greater depth through exercises and discussion.

Assessment Rationale And Relationship

The intermediate and final written exams will provide evidence of understanding of key concepts and economic models and the ability to analyse economic problems.