25917 Advanced Macroeconomics

Subject level: Undergraduate

Handbook description

This subject provides analytical foundations and frameworks for rigorous treatment of the microeconomic underpinnings of key macroeconomic phenomena such as investment, consumption, economic growth and business cycles. It also provides a theoretical framework for discussion of macroeconomic policy.

Subject objectives/outcomes

On successful completion of this subject, students should:

1. understand the key frameworks used in macroeconomics with a view to either graduate study in macroeconomics or engagement in business practice
2. be able to engage in and contribute intelligently to rigorous macroeconomic policy study and debate
3. be able to analyze and contribute to macroeconomic discourse in written form.

Contribution to graduate profile

A detailed conceptual framework for understanding macroeconomic policy is developed to provide rigorous microeconomic underpinnings for macroeconomic phenomenon such as investment, consumption, economic growth and business fluctuations.

Teaching and learning strategies

Teaching and learning strategies include lectures and workshops. Content for this subject will be supported by UTSOnline.

Content

• Microeconomic foundations of macroeconomic behaviour
• Aggregate supply, aggregate demand and macroeconomic stability
• The Keynesian revolution: nominal rigidities and expectations
• The Rational Expectations School
• Theories of unemployment and the labour market
• Theory of economic policy: costs of inflation, inflation targeting, Ricardian equivalence, the cost of budget deficits
• Theory of economic growth and cycles: Keynesian growth theory, the Solow model, endogenous growth, real business cycle theory.

Required text(s)

Romer D. (2006) Advanced Macroeconomics, New York: McGraw Hill.

Jones C.I. (1998), An Introduction to Economic Growth, New York: Norton.

Jones H. (1975), An Introduction to Modern Theories of Economic Growth, Walton, Surrey: Nelson.

Chiang A. C. and Wainwright K. (2005), Fundamentals of Mathematical Economics, New York: McGraw Hill.