Postgraduate Course: Understanding Economies (EMBA) (CMSE11231)
||College||College of Arts, Humanities and Social Sciences
|Credit level (Normal year taken)||SCQF Level 11 (Postgraduate)
||Availability||Not available to visiting students
|Summary||This course focuses on macroeconomics and is designed to provide sufficient understanding of the dynamics and developments in the economy to enable participants to engage in informed debate and to interpret relevant reports on contemporary economic issues.
The course aims to support an understanding of business because macroeconomics affects all companies through: level of demand for products; interest rates - with their effect on the costs of the firm; and the exchange rate - which tends to intensify or reduce competition even for firms not overtly engaged in trade. Each of these elements interact both with themselves and with other factors, such as government policy.
Demand, Supply and the Market
The Determination of National Income
The Multiplier, Fiscal Policy and Foreign Trade
Money and Modern Banking
Interest Rates and Monetary Transmission
Aggregate Supply and Inflation
Student Learning Experience
Lectures provide the framework and agenda and motivate private study by providing the structure of the argument. These are supported by weekly workshops, which both clarify understanding and, by providing a forum for discussion, encourage the students to take an active role in working with the concepts and to develop the ability to explain how the different factors work. The workshops will provide a forum for feedback on understanding of concepts, clarity of problem solving, analytical skills and reasoning.
Entry Requirements (not applicable to Visiting Students)
||Other requirements|| None
Course Delivery Information
|Not being delivered|
On completion of this course, the student will be able to:
- Understand and discuss critically the macro-economy, particularly the elements measured by GNP, GDP and National Income.
- Understand and discuss critically the determinants of changes in the current and capital accounts of the balance of payments and their impact on exchange rates, and the implications of rising GNP for tax revenues and the current account of the balance of payments.
- Understand and discuss critically the role of savings and investment - and more generally the role of leakages (savings, taxation and imports) and injections (Investment, Government expenditure and Exports) in determining the level of GDP.
- Understand and discuss critically the role of government in expanding aggregate demand through fiscal policy.
- Understand and discuss critically the creation of money by the banking system and the limits due to reserve requirements, the role of the interest rate in affecting the demand for money, the role of money supply in inflation and the use of monetary policy to control inflation and the role of the central bank.
|The core textbook is D Begg, G Vernasca, S Fischer & R Dornbusch, Economics, 10th edition, McGraw Hill, 2011.|
|Graduate Attributes and Skills
||Cognitive and Subject-Specific Skills:
Apply a systems-thinking perspective when analysing economic and business problems
Apply logical thought when analysing cause and effect in the presence of interdependence
Apply symbols and simple equations to model real-world phenomena
Analyse and understand data in the presence of multi-causal phenomena
Skills of argument development and persuasion.
Demonstrate skills of critical thinking and make effective use of data and analytical tools.
Plan and manage independent study and research, and communicate effectively in writing.
|Keywords||Economy Demand Supply Income Trade Banking
|Course organiser||Prof Jonathan Crook
Tel: (0131 6)50 3802
|Course secretary||Mrs Angela Muir
Tel: (0131 6)51 3854