Introduction to Macroeconomics

Description

Contents: This module covers key concepts and standard theoretical models aimed at understanding the basics of macroeconomic – monetary and fiscal - policy. In this course, we will be developing a general equilibrium model based on an analysis of three different markets - goods, financial, and labour market – focusing on the short (year-to-year) and medium run (less than 5 years) macroeconomic dynamics.   By modelling the macroeconomy, we will not only better understand the role of macroeconomic policies for business cycles stabilisation but also be able to analyse and explain some of the crucial questions facing economic policymakers in present times, including the Global Financial Crisis, the policy response to the Covid19 lockdown, the UK mini-budget crisis, the recent inflationary pressures, etc. To this purpose, you will be trained to collect and interpret macroeconomic data in the light of relevant theoretical models.  While 'SESS0008: Introduction to Macroeconomics' can be taken as a stand-alone course, it also provides the necessary foundation for the intermediate unit, 'SESS0021: European Macroeconomics', and together these two units provide a solid background for more advanced studies (see SESS0068: ‘International Macroeconomics’. Teaching delivery: Teaching is based on three contact hours per week: a 2-hour lecture and 1-hour small-class tutorial.  Indicative Topics:  1.    Measuring the macroeconomy 2.    The goods market 3.    The financial market 4.    IS-LM model 5.    Expanding the IS-LM model and the Global Financial Crisis 6.    The labour market 7.    The Phillips curve 8.    IS-LM-PC model 9.    Open Economy 10.    Open Economy II Teaching resources. “Macroeconomics: A European Perspective” by Blanchard, Amighini, Giavazzi- 2021 (4th edition). Accessible through UCL Library.