Prof D Quah, Prof V Rappoport and Prof W Den Haan.

This course is for MSc Economics, MSc Economics and Philosophy and MSc Finance and Economics. Other graduates on MPA Public and Economic Policy/MPA Public Policy and Management/MPA International Development/MPA European Public and Economic Policy/MPA Public and Social Policy may attend with the permission of the MSc Economics programme Director. This will normally only be granted to students who have taken EC400 (Introductory Course in Mathematics and Statistics) held annually in September and achieved the required standard.

Students should have completed an undergraduate degree or equivalent  in Economics and EC400 (Introductory Course in Mathematics and Statistics).

The aim of the course is to give a wide-ranging survey of modern macroeconomics.

Growth in the global economy
The shifting global economy. Economic growth: neoclassical growth
Endogenous technology, intellectual property rights.

Business Cycle and Asset Pricing Facts
Household behaviour: the life-cycle permanent-income model, precautionary saving, liquidity constraints, and empirical testing.
Overlapping generation models: fiscal policy analysis, ricardian equivalence, government debt and social security reform.
Asset pricing models: the consumption-based capital asset pricing model and the static capital asset pricing model.

Investment and Tobin's Q
Monetary Policy in Theory and in Practice

Lectures EC413: 40 MT and LT.

Classes EC413.A: 20 Sessional.

Exercises are discussed in each class. There will be a one-and-a-half-hour mock examination at the end of the MT and another at the beginning of the ST.

There are no texts that correspond exactly to the course. M Obstfeld & K Rogoff, Foundations of International Macroeconomics, MIT Press, 1996 and O Blanchard & S Fischer, Lectures in Macroeconomics. Useful background for more technical material is N Stokey & R Lucas, Recursive Methods in Economic Dynamics. Primary reading, however, will be journal articles. A full list will be available at the start of the course.

A three-hour written examination in the ST. 50% of the marks are given for seven short questions, and the remainder for two (out of four) long questions.