Advanced Macroeconomics

Key information

Start date
End date
Term 2
Module code
FHEQ Level
Department of Economics

Module overview

This is one of the core modules of the MSc Economics programme. Using a political economy and pluralist perspective, the module builds on and expands the Macroeconomics module of Term 1. It provides a critical overview and in-depth analysis of macroeconomic theories and methods, focusing on a variety of issues that are at the centre of the contemporary debates on macroeconomic policies. These include mainstream and heterodox macroeconomic modelling approaches, shadow banking and financialisation, distribution and growth, the macroeconomics of climate change, fiscal and monetary policies for climate mitigation, financial globalisation, crises and the role of gender in macroeconomics.

Students pursuing a degree external to the Department of Economics should contact the convenor for approval to take this module.

Objectives and learning outcomes of the module

On successful completion of this module, students will be able to demonstrate:

  • a critical understanding of the historical, social and international context of contemporary macroeconomic theories and their policy prescriptions;
  • an ability to analyse the assumptions, methodological underpinnings and implications of macroeconomic models;
  • a thorough understanding of the role of global finance in macroeconomic performance;
  • an ability to analyse the implications of climate change, inequality and gender for macroeconomic theories and policies;
  • an in-depth understanding of the current macroeconomic policy debates.


Method of assessment

AS1 - 50% / EXAM - 50%


Suggested reading

No single particular textbook is used for this module. The readings consist primarily of academic papers.  However, students are advised to consult the following books:

  • Galí, J. (2015). Monetary Policy, Inflation and the Business Cycle, Princeton University press, 2nd edition.
  • Godley, W. and Lavoie, M. (2012). Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth, Basingstoke: Palgrave Macmillan, 2nd edition.
  • Lavoie, M. (2014). Post-Keynesian Economics: New Foundations, Cheltenham, UK and Northampton, MA, USA: Edward Elgar.
  • Romer, D. (2019). Advanced Macroeconomics, New York: McGraw Hill, 5th edition.
  • Taylor, L. (2004). Reconstructing Macroeconomics: Structuralist Proposals and Critiques of the Mainstream. Cambridge, Massachusetts and London: Harvard University Press.


Important notice regarding changes to programmes and modules