Topics in Macroeconomics (EC0030)

? Credit Points : 20 ? SCQF Level : 10 ? Acronym : MSE-3-TinMacro

The course begins with a brief review of some key macroeconomic time series. Explaining this behaviour provides a basic motivation for the models and topics we will be examining throughout the course. The early topics consider macroeconomic behaviour in the long run, focusing on economic growth and long run aspects of public sector debt and deficits. We then turn to shorter run issues, examining the role played by shocks to the economy, expectations and price-wage adjustment, and developing, inter alia, three broad approaches to modelling business cycles - real business cycle models, monetary misperception models and New Keynesian models. Various policy issues will be considered throughout the course and we will conclude with a brief look at credibility and reputation, which have been important themes in recent macro policy literature. The course provides a common basis for more specialised work in various Honours options. The aim is to go some way towards bridging the gap between the standard presentation of macroeconomics in intermediate text books and the more rigorous analytical approaches of graduate courses in macroeconomics or journal articles. The course thus moves closer towards the research frontier, and provides insights into recent and current research and policy issues. The depth of treatment will vary. Some models will be examined in detail, particularly where they illustrate important, widely-used and not too difficult (!) modelling techniques. Other models will be dealt with in a more informal, summary way - aiming to give you a flavour of issues and models that we do not have time to explore in detail in the lectures.

Entry Requirements

? Pre-requisites : Hons Entry

Subject Areas

Home subject area

Economics, (Management School and Economics, Schedule H)

Delivery Information

? Normal year taken : 3rd year

? Delivery Period : Semester 2 (Blocks 3-4)

? Contact Teaching Time : 3 hour(s) per week for 10 weeks

First Class Information

Date	Start	End	Room	Area	Additional Information
10/01/2006	12:10	13:00	Room F21, 7 George Square	Central

All of the following classes

Type	Day	Start	End	Area
Lecture	Tuesday	12:10	13:00	Central
Lecture	Wednesday	12:10	13:00	Central
Lecture	Friday	12:10	13:00	Central

Summary of Intended Learning Outcomes

After successful completion of this course students will have: a thorough and rigorous understanding of a standard benchmark long-run growth model (the Solow model) and benchmark short-run model (variations on a Lucas, Sargent-Wallace 'surprise' supply function); and a somewhat less rigorous understanding of and insight into more advanced models including: optimising and endogenous growth models; New-Keynesian and Real Business Cycle models.
The understanding encompasses: relevant technical skills (notably solving simple dynamical systems, and rational expectations models); an appreciation of the limitations of simple models; and the use of the models to analyse relevant policy issues (including an understanding of the current fiscal framework of the UK and EU).
The general skills highlighted by the course include: problem-framing and problem-solving skills; critical analysis and appraisal; and obtaining and processing information from a variety of, often quite challenging, sources. Independent learning-by-doing through problem-based tutorial exercises plays an important role in skills development.

Assessment Information

A 2 hour degree examination on April/May and a multiple choice exam at the end of Semester 2. The overall mark for the course will be the higher of either the degree exam(weighted 75%) and the multiple choice exam (weighted 25%)or the degree exam (weighted 95%) and the multiple choice exam (weighted 5%).