• University of Exeter Business School
• Module

Macroeconomic Theory II

Module description

The module covers topics in modern macroeconomics with an emphasis on tools necessary to pursue research in macroeconomics.

Module aims - intentions of the module

The module explores core areas of modern macroeconomics with the aim to develop an understanding of macroeconomic models that enables students to use them to tackle macroeconomic questions. The emphasis will thus be on learning theoretical concepts and analytical techniques by using them in the process of discussing relevant modern macroeconomic topics.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

• 1. address complex questions at the frontier of macroeconomic research systematically and creatively.
• 2. make sound judgments and communicate their conclusions to specialists and non-specialists.

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

• 3. demonstrate self-direction and originality in tackling and solving macroeconomics problems.
• 4. continue to advance their knowledge and understanding, and to develop new skills to a high level.

ILO: Personal and key skills

On successfully completing the module you will be able to...

• 5. identify, tackle and solve relevant research problems in macroeconomics.
• 6. work independently and responsibly on complex research problems.

Syllabus plan

1.) Business Cycles: Real Business Cycles, Nominal Rigidities, Monetary Policy
2.) Labour Markets: Search and Matching, Labour Market Policy, Efficiency Wages, Growth and Unemployment.
3.) Financial Markets: Asset Pricing, Incomplete Markets, Banking and Credit, Financial Frictions.

Learning activities and teaching methods (given in hours of study time)

Details of learning activities and teaching methods

Formative assessment

Summative assessment (% of credit)

Details of summative assessment

Details of re-assessment (where required by referral or deferral)

Indicative learning resources - Basic reading

- Romer, Advanced Macroeconomics, McGraw-Hill Advanced Series in Economics, New
York, 2012.
- Ljungqvist and Sargent, Recursive Macroeconomic Theory, MIT Press, 2004.
- Stokey and Lucas, with Prescott, Recursive Methods in Economic Dynamics, Harvard
University Press, 1989.
- D. Acemoglu, Introduction to Modern Economic Growth, Princeton University Press, 2009.
- Barro and Sala-i-Martin, Economic Growth, McGraw-Hill, 1997.
- Obstfeld and Rogoff, Foundations of International Macroeconomics, MIT Press, 2000.
- Aghion and Howitt, Endogenous Growth Theory, MIT Press 1998.
- Pissarides, Equilibrium Unemployment Theory, MIT Press 2000.
- Walsh, Monetary Theory and Policy, MIT Press, 2010.

Key words search

Business cycles, labour markets, financial markets.