23939 Advanced Macroeconomics
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Subject handbook information prior to 2025 is available in the Archives.
Credit points: 6 cp
Subject level:
Postgraduate
Result type: Grade and marksRequisite(s): 23938 Macroeconomics 1
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Description
This subject complements 23938 Macroeconomics 1 by applying dynamic analytical tools in the study of incomplete markets and market failures. It equips students to approach contemporary research in macroeconomics competently and with confidence.
Subject learning objectives (SLOs)
| 1. | Understand modern theories of microeconomic foundations of market inefficiencies that contribute to macroeconomic fluctuations |
|---|---|
| 2. | Knowledgeably and critically read and analyse contemporary macroeconomic research |
| 3. | Understand and apply dynamic analytical tools in economic analysis |
Contribution to the development of graduate attributes
This subject is centered on the study of incomplete markets and market failures with particular reference to employment, credit, and asset markets. It analyses the theoretical microeconomic foundations of market inefficiencies resulting from asymmetric information and coordination failure.
Teaching and learning strategies
The subject will be taught using a combination of lectures and tutorials. There is no course textbook. Students will read from texts and articles appropriate to the selection of topics.
Content (topics)
The content will be selected from the following areas:
- Microeconomic foundations for macroeconomics phenomenon;
- Monetary economics;
- Models of labour market inefficiencies;
- Models of capital market inefficiencies;
- Models of asset market inefficiencies
Assessment
Assessment task 1: Assigned homework (Individual)*
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 20% |
| Criteria: | *Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Assessment task 2: Assignment (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 40% |
Assessment task 3: Final examination (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 40% |
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Required texts
There is no required textbook.
Recommended texts
Gali, J., Monetary Policy, Inflation and the Business Cycle, Princeton University Press, 2008.
Romer, D., Advanced Macroeconomics, McGraw Hill, 2011.
References
Delli Gatti, D., Di Guilmi, C., Gaffeo, E., Giulioni, G., Gallegati, M., Palestrini, A., 2005. A new approach to business fluctuations: Heterogeneous interacting agents, scaling laws and financial fragility. Journal of Economic Behavior and Organization 56, 489–512.
De Grauwe, P. and Yuemei J., Behavioural Macroeconomics: Theory and Policy. Oxford University Press, 2019
Greenwald, B. C. and Stiglitz, J. E, 1993. "Financial Market Imperfections and Business Cycles," The Quarterly Journal
of Economics, MIT Press, vol. 108(1), 77-114, February.
Lavoie, M., Post-Keynesian Economics: New Foundations, Edward Elgar Publishing, 2014.
Minsky, H. P., John Maynard Keynes, McGraw Hill, 2008.
Piketty, T., Capital in the 21st Century, Cambridge: Harvard University Press, 2014.
Shapiro, C. & Stiglitz, J. E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), 433-44, June.