Module Directory

This module studies some of the fundamental concepts and methods in macroeconomics. It equips students with the basic tools and methods of analysis used in economic reasoning. In this module students are introduced to National income accounting, the basics of fiscal and monetary policies in the short run, and the critical role of the Government's budget constraint.

The module then progresses into a discussion of the trade-off between inflation and unemployment and the role of the natural rate of unemployment. Particular emphasis is applied to understanding how macroeconomics can help understanding the economic environment we live in and the most important economic challenges we face.

The aims of this module are:

• To enable master’s level students to gain knowledge of the uses of macroeconomics in practical economic settings, alongside developing the basic reasoning so critical to macroeconomic analysis.


• To gain insights into explanations that have been put forward for the determinants of macroeconomic indicators such as unemployment and inflation, and how monetary and fiscal policies affect the macroeconomy.


• On equipping students with useful knowledge, illustrations drawn from practical examples including the popular press will be accessed.


• To present its subject matter in a manner suitable for students who have no prior background in economics, although they have some level of sophistication in their learning due to undergraduate training and some facility with analytical reasoning, which will be built upon as the module develops.

By the end of this module, students will be expected to be able to:

1. Identify the main features of macroeconomic theories, together with their strengths and weaknesses.


2. Describe how macroeconomic effects manifest themselves, particularly with regard to unemployment and inflation.


3. Provide an account of the main drivers of macroeconomic aggregates and the implications of this for government policy.


4. Understand the interaction between monetary and fiscal policy and the macroeconomic aggregates.


5. Formulate coherent written analyses and assessments of the subject in the preparation of an assignment and in more concise examination answers.

Complimentary learning or prior knowledge

The module is designed for economics students with an interest in the uses of economics beyond the undergraduate level. The proposed module is likely to be attractive to students who prefer to demonstrate their knowledge of economics by presenting their work via the discursive means of essay-writing (as distinct from an emphasis on formal, mathematical skills that are required in more technically oriented modules). Nevertheless, training in macroeconomic principles is necessary (in order to comprehend the interaction of macroeconomic variables and fiscal and monetary policies) – hence the incorporation of some quantitative element in both the final exam and the coursework. While a background in economics is desirable, it is not necessary and the module will specifically be designed for those who do not have such a background, although the level of the module implies that we expect students to “catch on” to the material quickly and be well versed in the methods of university learning.

Syllabus Topics include:

1. National Accounting and macroeconomic aggregates.


2. IS-LM model. Fiscal and Monetary Policy in a static setting.


3. Money and Inflation. Monetary Policy.


4. Economic Growth.

Throughout the term there will be a focus on key macroeconomic policy challenges. Please see the moodle page for a detailed syllabus.

The module will be delivered via:

• Two lecture hours per week for ten weeks in the Autumn term.
• One lecture hour (revision) for two weeks in the Summer term.
• One class hour per week would be held for specific purposes (to provide guidance and support for assignment preparation, problem sets, and discussion of topical issues related to the module's material).