This course takes both a short and a long-term view of the economy, and aims to help you understand recent developments in macroeconomics using graphic analysis and simple algebra.
It focuses on the stylised facts of business cycle fluctuations, economic growth and unemployment; discusses what light modern macroeconomics can shed on these facts; and finally evaluates the scope for policy to improve macroeconomic performance.
The economy in the long run
This first part of the course introduces the building blocks of the macro economy, and provides an overview of the performance of the economy in the long-run. Topics focus on the determination of national income, the determinants of long term economic growth, inflation and unemployment and economic pathologies such as persistent unemployment and hyperinflation
Money and inflation
Labour markets and unemployment
The open economy
The economy in the short run
An overview of the behaviour of economy in the short term. This part of the course reviews business cycle fluctuations, the design and effects of monetary and fiscal policy, budget deficits and government debt and the open economy.
Economic fluctuations and stabilisation policy
The evolution of stabilisation policy
The credit crunch
The course will conclude with a review of the European Monetary Union and the Euro Crisis, and the Great Recession.
World-class LSE teaching
The LSE Department of Economics is one of the biggest and best in the world, with expertise across the full spectrum of mainstream economics. A long-standing commitment to remaining at the cutting edge of developments in the field has ensured the lasting impact of its work on the discipline as a whole.
It is a leading research department, consistently ranked in the top 20 economics departments worldwide. This is reflected in the 2014 Research Assessment exercise which recognised the Department's outstanding contribution to the field.
The main textbook for this course is:
N. Gregory Mankiw, Macroeconomics, Palgrave Macmillan, Ninth Edition, 2015.
Another useful textbook for browsing data and case studies is:
Olivier Blanchard, Macroeconomics, Sixth Edition, (Pearson International Edition), 2012.
*A more detailed reading list will be supplied prior to the start of the programme
**Course content, faculty and dates may be subject to change without prior notice