Macroeconomics II

Module title	Macroeconomics II
Module code	BEE2026
Academic year	2023/4
Credits	30
Module staff	Dr Chloe Tiennot (Lecturer) Dr Szabolcs Deak (Convenor) Dr Dudley Cooke (Convenor) Dr Rish Singhania (Convenor)

Duration: Term	1	2	3
Duration: Weeks	11	11	0

Number students taking module (anticipated)	320

Module description

Summary:

The first term covers economic growth and develops a dynamic macroeconomic model from micro foundations, that is aggregate relationships are built up from microeconomic optimisation by representative agents, an important feature of modern macroeconomics. With this foundation, ideas are formalised further in the second term, before delving in to more open economy macroeconomics.

The second term explores two core areas of modern macroeconomics: monetary policy and international macroeconomics. Students will deepen their understanding about the role of monetary policy in the macroeconomy and study its limitations focusing particularly on the role of private sector expectations. Students will also develop their knowledge of how international trade in goods and financial assets affects the macroeconomy and acts to widen the scope of policy decisions.

Additional Information:

Internationalisation

This module takes a European and American perspective of macroeconomics, but these ideas are application even in developing countries. Students gain an understanding of exchange rates, why they change over time, what determines them, how to assess the economic prospects of countries. Any company in a global economy must deal with these issues.

This module addresses some of the major policy questions affecting the world economy today. It takes an international perspective on these problems and students will gain an understanding of the policy trade-offs faced by policymakers in the closed and open economies.

External Engagement

Previously, we had a guest speaker lecture on Central Bank policy.

Employability

In this module students develop a number of valuable skills, including their capacity for logical thinking, problem solving, analytical and discursive skills.

Module aims - intentions of the module

The aim of the module is to equip students with the basic theoretical ideas of modern macroeconomics,
and how they are applied to core economic problems.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

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

1. Critically assess different policy proposals for managing the macro-economy;
2. Analyse macroeconomic problems qualitatively and quantitatively.

ILO: Discipline-specific skills

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

3. Develop analytically ability by solving well-defined economic problems;
4. Analyse economic models by expressing relationships through graphs;
5. Present and discuss a piece of economic analysis;
6. Evaluate the characteristics of macroeconomic data and their statistical properties.

ILO: Personal and key skills

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

7. Identify the essential elements of, and to organise ways to think about, a problem;
8. Demonstrate organisational skills developed by reading for the course topics and preparation for classes.

Syllabus plan

Term 1:

Measurement
Economic growth
Micro foundations and a dynamic macro model
Expectations: The basic tools. Consumption and investment. Output and policy.

Term 2:

Topic 1: Liquidity Traps
Topic 2: Interest Rate Rules
Topic 3: Monetary Policy and Expectations
Topic 4: Optimal Monetary Policy
Topic 5: Intertemporal Approach to the Current Account
Topic 6: The Law of One Price and Real Exchange Rate
Topic 7: Nominal Exchange Rate Determination

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

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
45	255	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled learning and teaching activity	40	Lectures
Scheduled learning and teaching activity	5	Tutorials
Guided independent study	255	Assigned readings

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Tutorial questions	In class	1-8	In class feedback

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
0	100	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Mid-term exam (term 1)	10	50 minutes	1-8	Written feedback and indicative answers
Term 1 examination	40	2 hours	1-8	Written feedback
4 MCQ tests (term 2)	10	2 hours	1-8	Verbal feedback and indicative answers
Term 2 examination	40	2 hours	1-8	Written feedback

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

Original form of assessment	Form of re-assessment	ILOs re-assessed	Timescale for re-assessment
Mid-term exam (term 1)	Mid-term exam (term 1)	1-8	August/September reassessment period
Term 1 examination	Term 1 examination (40%)	1-8	August/September reassessment period
4 MCQ tests (term 2)	Single MCQ test (10%)	1-8	August/September reassessment period
Term 2 examination	Term 2 examination	1-8	August/September reassessment period

Indicative learning resources - Basic reading

Basic reading:

Abel, A., Bernanke, B., and Croushore, D., Macroeconomics (8th edition, or above) Pearson.
Williamson, S. D., Macroeconomics, 5th ed., Pearson
Mankiw, G., and Taylor, M, Macroeconomics (European edition/6th edition, or above), Worth.

Note: there are many versions (inc. ‘International’ and ‘European’) of these books and they change only marginally from edition to edition.

Indicative learning resources - Web based and electronic resources

ELE – https://vle.exeter.ac.uk/course/view.php?id=8906

Key words search

Macroeconomics

Credit value	30
Module ECTS	15
Module pre-requisites	Passed BEE1036 and passed BEE1037
Module co-requisites	Non-Requisites (cannot be taken with): BEE2038, BEE2039, or BEE3062.
NQF level (module)	5
Available as distance learning?	No
Origin date	23/09/2013
Last revision date	26/09/2023