Macroeconomic Policy and Financial markets

Key information

Start date
End date
Year of study
Year 1
Duration
Term 1
Module code
15PFMC087
FHEQ Level
7
Credits
15
Department
School of Finance and Management

Module overview

This module is designed to increase the depth of understanding of macroeconomics by focusing on the relation that financial markets have to macroeconomics. It places the subject in a real-world context, aiming to show how theoretical and empirical knowledge of macroeconomics and financial markets provides ways to analyse the salient problems faced by modern macroeconomic policy makers.

Objectives and learning outcomes of the module

On successful completion of this course a student will be able to:

  • Outline and discuss the connection between financial markets, real saving by households, and real investment by firms
  • Analyse how monetary policy can affect real macroeconomic activity through its interaction with financial markets
  • Explain the relation between financial markets and governments’ fiscal policies
  • Discuss the effect that expectations of future inflation and interest rates can have on macroeconomic policy and financial markets
  • Analyse the connection between foreign exchange markets, imports and exports
  • Examine the possibility of instability arising from interaction between international capital flows and financial markets
  • Evaluate theories in the light of empirical evidence
  • Use theory and evidence to analyse actual problems facing macroeconomic policy makers

Disclaimer

Important notice regarding changes to programmes and modules