Prerequisites: Introductory macroeconomics and microeconomics, multivariate calculus (in particular, constrained optimisation)
Dr Kevin Sheedy
Dr Nicola Gennaioli
In recent times, macroeconomic questions have once again surged to the forefront of public attention and debate. This course aims to bring you up-to-date with modern developments in macroeconomic theory and offer fresh perspectives on the macroeconomic challenges of the day.
The course is essentially structured around a series of key questions:
What are the forces that drive long-term prosperity?
Why does economic activity fluctuate?
Can and should policymakers seek to ameliorate business cycles?
What are the features of financial markets and labour markets that make them special, and how do they interact with the rest of the economy?
What is the role of banks and why are they inherently fragile?
How should households and firms plan for an uncertain future?
What are the implications of increasing globalisation of trade and finance for the economy?
How should central banks conduct monetary policy?
The approach of the course is to discuss the salient features of the data and then go on to present macroeconomic models to study these issues.
The main textbook for the course is Williamson, Macroeconomics, 4th ed., Pearson (2010).
A useful background reading is Mankiw and Taylor, Macroeconomics, W H Freeman & Co (2006).
Lectures: 36 hours Classes: 12 hours
Assessment: Two written examinations