Macroeconomic theories and techniques (MSc RID)
- Course Code:
- Unit value:
- Year of study:
- Year 1
- Taught in:
- Term 2
This course is only available to students enrolled on the MSc Research for International Development programme.
The purpose of this course is to provide an overview of closed and open economy macroeconomic theory with coverage of important theoretical issues and techniques. A critical assessment is made of the analytical underpinnings of the policies for stabilisation and structural adjustment. Topics covered include: advanced models in macroeconomics with special emphasis on open economies and structural adjustment.
This course will delivered alongside the parallel course Macroeconomics, worth 18 CATS credits. Students will have the opportunity to attend all lectures and tutorial, but the examinable component will be approximately 85% of the 18 CATS credits syllabus. The following topics will not be part of the examinable component of this course: Week 7 Microfoundations and Policy
Objectives and learning outcomes of the course
On successful completion of the course, students will be able to:
- Understand how macroeconomics has developed from the Keynesian revolution onwards especially how theoretical principles have been applied to the closed economy;
- Understand how international macroeconomics has evolved;
and the application of these principles to developing countries especially in the context of poverty reduction.
- Understand the consequences of the increasing dependence upon general equilibrium modelling;
- Understand the relationship between short and long run macroeconomic performance;
- Understand the relationship between microeconomics and macroeconomics;
- Understand the consequences of assuming different types of expectations in macroeconomic models;
- Understand heterodox approaches to macroeconomics;
Understand the theory and practice of financial programming.
Students will be expected to be familiar with the main schools of thought to be found in the literature and to answer questions on them in essays and examination both expositionally and critically, whilst displaying an understanding of the technical, theoretical and conceptual content of macroeconomics at a journal level.
Method of assessment
Assessment weighting: Exam 70% / Coursework 30% (1 essay). Resubmission of coursework regulations apply.
- Any advanced undergraduate macroeconomic text
- Blanchard, O., D. Romer, M. Spence and J. Stiglitz (eds) (2012) In the Wake of the Crisis: Leading Economists Reassess Economic Policy, Cambridge: MIT Press.