Macroeconomic Theory 2

Module code: EC7102

Macroeconomics is the branch of economics that focuses on the performance and structure of an economy as a whole, rather than the behavior of individual firms and consumers. In particular, macroeconomics aims to explain, as well as predict, the development of macroeconomic variables such as GDP (Gross Domestic Product), the rate of unemployment, and the rate of inflation. Macroeconomic methods are used extensively by governments and central banks around the world when designing economic policy.

Topics covered

• Keynesian models featuring nominal, real rigidities, or financial market frictions
• Theory of, and evidence relating to, monetary policy
• Economic growth, especially the endogenous growth literature