Macroeconomic Analysis

This module provides a detailed and critical analysis of macroeconomic theories and policies. It pays particular attention to:

• The schools of macroeconomic thought, pluralism and critical thinking: For most macroeconomic phenomena (such as inflation, unemployment and economic growth) the approaches of different schools of thought are compared and contrasted, placing emphasis on their underlying assumptions.
• The links between macroeconomic theories and the real world: Theories are evaluated and assessed based on real-world examples. This permits a thorough understanding of the relevance of these theories and how they can be used as a tool for analysing contemporary economic phenomena.
• The importance of the ecosystem: Drawing on thermodynamics, the module portrays the macroeconomy as a subsystem of the global ecosystem and provides an analysis of how macroeconomic activity creates environmental problems (such as climate change) that affect the Global South and the Global North in a different way. The module also provides a critical analysis of the proposals that have been made for dealing with the environmental crisis.
• The role of gender and race in macroeconomics: Macroeconomics has traditionally ignored feminist and race-related perspectives to the analysis of macroeconomic phenomena and policies. The module covers some key aspects of the growing macroeconomic literature on these issues.
• The role of the financial system: Financial and monetary institutions play a very significant role in modern globalised economies. A significant part of this module focuses on the interplay between the macroeconomic and the financial system and the key role of money, bank balance sheets and the power of global financial institutions.

Prerequisites

Economic Principles (Macro)

Objectives and learning outcomes of the module

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

• a critical understanding of the core assumptions underlying particular macroeconomic models;
• a sufficient technical proficiency to summarise major contributions to mainstream and heterodox macroeconomic theories;
• a detailed understanding of the policy implications attached to different theoretical propositions;
• a critical awareness of what environmental constraints imply for macroeconomic theories and policies;
• an ability to critically comment on current macroeconomic policy debates.

Method of assessment

AS1 - 20% / AS2 - 20% / EXAM - 60%

Disclaimer

Important notice regarding changes to programmes and modules