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Unit information: MRes Macroeconomics 2 in 2015/16

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Unit name MRes Macroeconomics 2
Unit code EFIMM0026
Credit points 15
Level of study M/7
Teaching block(s) Teaching Block 2 (weeks 13 - 24)
Unit director Dr. Yanos Zylberberg
Open unit status Not open




School/department School of Economics
Faculty Faculty of Social Sciences and Law

Description including Unit Aims

This unit aims to broaden and deepen knowledge and understanding of selected topics in macroeconomics focusing in particular on issues of short term fluctuations and the foundations for the current workhorse dynamic models. In a first part, we will study the consumer problem: intertemporal choices, consumption and savings under uncertainty. In a second part, we introduce firms and the labour demand side. We discuss the general equilibrium dynamics and “Real Business Cycles” models. We then introduce monetary policy with (nominal) price and wage rigidities in a New-Keynesian framework. Finally, in a last section, we study some labour theories (frictional unemployment and search models a la Mortensen-Pissarides, and job rationing). The unit aims to build in students the ability to know, understand, and evaluate these tools while understanding their limitations and to apply them when undertaking novel research.

Intended Learning Outcomes

This unit follows on from MRes Macroeconomics II in providing a thorough and in-depth treatment of further basic concepts in macroeconomics and introduces fundamental analytic paradigms rigorously, with a view to equip the students with sufficient foundational understanding of the discipline to be able to access the journal articles first-hand, to evaluate them critically and to start independent research projects. Students will also continue to learn about the application of computational software such as MATLAB to these tools, its scope and limitations.

Teaching Information

There are two lectures and one exercise class per week. Coursework will consist of weekly exercises which will be used for course assessment.

Lectures will introduce and explain the different concepts and methods as well as their application and limitation whereas exercise classes will provide the opportunity to practice the selection and use of these methods as well as the application, scope and limitation of computational software such as MATLAB to these methods.

Contact Hours Per Week 3

Student Input

20 hours lectures

10 hours tutorials

15 hours preparation of weekly exercises for assessment

3 hours final exam

102 hours individual study

Assessment Information

Summative assessment: 3-hour written exam (85%), weekly exercises on the various topics (15%). The exam will test the knowledge, selection, application and evaluation of tools and methods, whereas the exercises will incentivize the students to learn to use, apply and evaluate these methods as well as computational software while getting feedback on their progress.

Formative assessment: class participation and discussion in tutorials. These will provide further opportunities for feedback on the students’ progress.

Reading and References

Gali, J. Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian Framework, Princeton University Press

Romer, D. Advanced Macroeconomics, (Fourth Ed.), McGraw-Hill