CONTENT

This module covers theoretical models on business cycle fluctuations and growth, inflation, and unemployment at an intermediate to advanced level. It provides an overview of the most critical macroeconomic topics and introduces students to concepts that are important for more advanced studies of macroeconomics and practical work in this field. The focus of this module is on aggregate models without micro-foundations. The course will integrate the financial system with a model of the macro-economy. In doing this, it takes account of the gaps in the mainstream model exposed by the financial crisis and the Eurozone crisis. This equips the students with a realistic modelling framework to analyse the economy both in crisis times and in periods of stability.

MODULE OBJECTIVES

• You learn how to work with macroeconomic models at an intermediate to advanced level.
• You get an overview of critical macroeconomic topics and facts.
• You acquire knowledge that is necessary to understand financial crises, their unfolding, and possible solutions.
• You acquire sound theoretical foundations for macroeconomic policy analysis.

PREREQUISITES

Students will need excellent English skills and the willingness to deal with mathematical economic models. Knowledge of macroeconomic models and concepts at the principles to intermediate level is expected. We recommend the reading of the following chapters before the start of the course to familiarize with the style of the book and to make a recap of the most crucial concepts needed to progress on the course.
- Chapter 1, “The demand side.”
- Chapter 2, “The supply side.”
From the textbook: Carlin W., Soskice D., (2015) Macroeconomics. Institutions, Instability, and the Financial System. Oxford University Press.