Course Description

Course Name

Macroeconomic Theory

Session: VDNS3121

Hours & Credits

18 Credit Points

Prerequisites & Language Level

Taught In English

  • There is no language prerequisite for courses at this language level.

Overview

A paper aimed at preparing Honours students for independent study in macroeconomics. The main topics covered will be the AS/AD paradigm, new classical macroeconomics, monetary and fiscal theory and policy.

This paper follows a modern approach to macroeconomic theory based on microeconomic foundations. In particular, we analyse the consumption, saving and labour-supply decisions of households and the employment and investment decisions of firms. We also examine aspects of aggregate behaviour depicted in dynamic general equilibrium models of an economy. Theories of the business cycle, monetary and fiscal policy, financial crises, unemployment and international macroeconomics will be discussed.

Learning Outcomes
After completing the paper, the successful student will be able to:
- Describe the process of macroeconomics research and explain the role of theoretical models in that process
- Construct and solve macroeconomic models based on microeconomics fundamentals (representative-agent, general equilibrium models)
- Understand and analyse the underlying economic forces that drive unemployment, growth, inflation, savings, short-run fluctuations in consumption and investment, stability of the financial system and international issues
- Use academic writing to summarise and critique the current macroeconomic literature and economic events

Textbooks
Williamson, Stephen D. (2014), Macroeconomics. International (5th) edition [ISBN: 978-1-292-00045-9].
Note: The older edition (4th) is also appropriate, but page numbers for assigned readings will be different.

*Course content subject to change