Course Details in 2024/25 Session

Module Title	LM Macroeconomics
School	Birmingham Business School
Department	Economics
Module Code	07 40070
Module Lead	Kaushik Mitra
Level	Masters Level
Credits	20
Semester	Semester 1
Pre-requisites
Co-requisites
Restrictions	None
Exclusions
Description	The module covers two main components central to modern macroeconomics: growth and business cycles; and open economy macroeconomics. The approach is grounded in theory, which is used to inform an understanding of real-world economies and macroeconomic policy. The first part of the module investigates the time paths of consumption, output and other economic variables under the assumption of intertemporal optimisation. Traditional and endogenous growth theories are discussed and their public policy implications considered. The second part covers a range of open-economy topics. Relationships between goods markets and asset markets in different countries are explained; which involves the discussion of topics such as purchasing power parity and uncovered interest parity. A variety of open macroeconomic models, and policy issues such as exchange rate target zones and speculative attacks on fixed exchange rate regimes, are analysed.
Learning Outcomes	By the end of the module students should be able to: Evaluate and appraise key concepts in advanced modern macroeconomic theory of the closed economy Critically evaluate the impact of an open economy for macroeconomic behaviour and policy Identify and discuss the dilemmas and constraints facing policy makers Analyse and derive macroeconomic models mathematically and solve mathematical problems
Assessment
Assessment Methods & Exceptions	Assessment: 1750 word individual assignment (50%). 1.5 hour exam (50%). Reassessment: Resubmission of failed component(s): 1750 word equivalent individual assignment (50%). 1.5 hour exam (50%).
Other
Reading List