The Macroeconomic Environment

Module code: EC7090

Macroeconomics studies the interactions between the big issues that affect the economy such as growth, inflation, unemployment, output fluctuations and crises. In this module, you will study the methods of advanced macroeconomic analysis and learn how to apply these methods in selected current issues in macroeconomics. The topics we will discuss relate to specific policy decisions and policy regimes, emphasising the links between the development of macroeconomics as a subject and as a vehicle for understanding and improving real world policy decisions.

Topics covered

• Basic concepts and the circular flow of income
• The basic demand side model
• Investment and the IS curve
• Financial markets and the LM Curve
• Monetary and fiscal policies
• Supply and inflation
• Supply and the labour market
• Trade and exchange rates
• Special topics – EU single market and world economy