EC424 One Unit
Monetary Economics and Aggregate Fluctuations
This information is for the 2025/26 session.
Course Convenor
Dr Kevin Sheedy
Dr Ambrogio Cesa-Bianchi
Availability
This course is available on the MSc in Econometrics and Mathematical Economics, MSc in Economics and MSc in Economics (2 Year Programme). This course is available with permission as an outside option to students on other programmes where regulations permit. This course uses controlled access as part of the course selection process.
How to apply: These courses are intended for MSc Economics, MSc Economics (2 Year Programme), and MSc EME Students. Any external student must have successfully completed EC400 or EC451 in September and/or have approval of the Department of Economics.
Deadline for application: Please apply as soon as possible after the opening of course selection for all courses.
For queries contact: Econ.msc@lse.ac.uk
Requisites
Pre-requisites:
Students must have completed EC400 before taking this course.
Additional requisites:
In exceptional circumstances, students may take this course without EC400 provided they meet the necessary requirements and have received approval from the course conveners (via a face-to-face meeting), the MSc Economics Programme Director and their own Programme Director. Contact the Department of Economics for more information (econ.msc@lse.ac.uk) regarding entry to this course.
Course content
The course aims to develop the student's ability to undertake research in macroeconomics by studying a number of current issues both theoretical and applied.
In the AT, we begin by studying money’s role as a medium of exchange and the determination of the price level in a variety of theoretical models. We then study the role of monetary policy in affecting the macroeconomy, and the implications of nominal rigidities such as sticky prices. We analyse the costs of inflation and optimal monetary policy, and we also look at unconventional monetary policies such as those deployed when a central bank is constrained by the interest-rate lower bound.
In the WT, we discuss the causes and consequences of business cycles and how government policies can affect them. Specifically, we study in the different tools that central banks have to their disposal these days to control inflation, financial stability, and economic activity.
Teaching
1 hours of seminars in the Spring Term.
10 hours of seminars and 20 hours of lectures in the Winter Term.
20 hours of lectures and 9 hours of seminars in the Autumn Term.
This course has a reading week in Week 6 of Autumn and Winter Term.
Formative assessment
Two marked assignments per term.
Indicative reading
A reading list will be handed out by the lecturers at the beginning of their sessions.
Assessment
Exam (50%), duration: 120 Minutes, reading time: 15 minutes in the Spring exam period
Essay (50%, 6000 words)
This course is IRDAP-enabled, meaning that resit and deferred assessments will take place in August 2026.
Key facts
Department: Economics
Course Study Period: Autumn, Winter and Spring Term
Unit value: One unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 22
Average class size 2024/25: 11
Controlled access 2024/25: YesCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.