EC2B1      One Unit
Macroeconomics II

This information is for the 2025/26 session.

Course Convenor

Availability

Requisites

Pre-requisites:

Before taking this course, students must have completed: (EC1A1 and EC1B1) and (MA100 or MA108)

Additional requisites:

MSc in Economics (2 Year Programme) students can take either Mathematical Methods (MA100) or Further Mathematical Methods (MA212) alongside EC2B1.

This is an intermediate course in macroeconomics that builds on the knowledge learned in Macroeconomics I (EC1B1). A set of important frameworks and approaches to model macroeconomic developments will be discussed. You will be challenged to apply the tools that we develop in the course to understand better historical and contemporary events. An important aspect of the course is that you will acquire a deeper understanding of the material through an assignment containing some programming and data analysis.
The AT part of the course focuses on long-term economic developments. We will explore possible explanations for the empirical observation that macroeconomic developments differ so widely across countries. We begin with conventional economic reasoning, but will also explore the role of political systems, (financial) institutions, and culture. In addition to long-term economic growth, we will also study why countries are susceptible to economic crises and what policies and/or institutions can be put in place to reduce this risk. We will not just focus on economic aggregates, but also analyse how economic growth affect different individuals. Specifically, we will look at the interaction between economic growth and social inclusion and in particular women’s rights.
The WT part of the course provides a unified approach to study macroeconomics which is based on microfoundations and general equilibrium taking into account possible market imperfections. We will study economic choices that are key for macroeconomic developments, such as the consumption-savings decision, the labour-leisure decision, and the investment decisions. These are  the building blocks for some models with which we can study the behaviour of aggregate variables as well as the role of economic policies.

1 hours of classes in the Spring Term.
20 hours of lectures and 9 hours of classes in the Winter Term.
20 hours of lectures and 10 hours of classes in the Autumn Term.

There are weekly assignments and feedback will be given on two per term.

• Jones, Charles and Dietrich Vollrath, Introduction to Economic Growth, 4th Edition. 
• Kurlat, Pablo. "A Course in Modern Macroeconomics." (2020)

Exam (70%), duration: 180 Minutes, reading time: 15 minutes in the Spring exam period

Project (30%, 2500 words)

The project comprises a programming component, some data analysis, and a description of the results.