| CODE | ECN1203 | ||||||||
| TITLE | Intermediate Macroeconomics | ||||||||
| UM LEVEL | 01 - Year 1 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 5 | ||||||||
| ECTS CREDITS | 4 | ||||||||
| DEPARTMENT | Economics | ||||||||
| DESCRIPTION | This study-unit takes a deeper look at the theory of economic output determination from a short run, medium run as well as long term perspective. The approach is theoretical with the theory being limited to algebraic expressions and graphical analysis. The aim of this study-unit is to allow students to develop a good understanding of macroeconomic theory with a special focus on the goods market, financial market, the labour market as well as introduce the students to economic growth theory. The study-unit commences with an introduction and overview of International developments over the most recent years with a special focus on the Maltese Economy. In order to effectively comprehend the implications of these developments the study-unit first assesses the theory relating to the behavior of the goods and the financial markets. Subsequently utilizing the knowledge gained on the behavior of these two markets we will develop a short run model of output determination, namely the IS-LM model. This model shall be utilized to evaluate the implications of both fiscal and monetary policy on output as well as interest rates. The next topic which will be covered is that of the labour market were an extensive overview of recent developments within the Maltese and global labour market will be covered followed by the development of the wage setting and price setting labour market model which will be utilized to the evaluate the impact of labour market policies on the equilibrium unemployment rate. The study-unit subsequently assesses the impact of fiscal and monetary policy, as well as that of supply side shocks, within the medium run scenario by making use of the AS-AD model. To conclude the medium run assessment of the behavior of the economy the study-unit will cover the theoretical developments relating to the Philips curve relation as well as undertakes an assessment of the dynamic relationship between inflation, output and nominal money growth. The study-unit concludes by undertaking an assessment of output determination in the long run scenario which relates to the area of macroeconomics known as economic growth theory. After assessing the facts of economic growth the topic of economic growth shall be be undertaken via the application of an economic growth model which emphasizes the relationship between capital accumulation and output growth from which it is possible to effectively comprehend which are the key drivers of economic growth. Study-unit Aims: The study-unit focuses on understanding how the goods, financial and labour markets operate in an economy and how to apply the understanding of the theories covered within the study unit to major historical events with respect to each of these markets. The study-unit aims to undertake an thorough analysis of the relationship between output, inflation and unemployment. This will be done via the use of various macroeconomic models to assess both the short run and medium run dynamics. The study-unit concludes by considering issues related to the topic of long-run economic growth which will enable students to comprehend which are the key drivers behind the process of economic growth. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Comprehend how the goods, labour and financial markets operate in an economy; - Evaluate major historical events within the context of each of these markets; - Comprehend the importance of macroeconomic development in an economy; - Comprehend the historical development of major macroeconomic theories; - Comprehend the complexity of effective policy making within a Maltese and EU context. 2. Skills: By the end of the study-unit the student will be able to: - Assess short term movements in the economy; - Collate data on the main economic indicators and analyze such data; - Undertake more objective and critical assessment of current economic development; - Assess current economic developments in light of the major macroeconomic theories. Main Text/s and any supplementary readings: - Blanchard, Amighini & Giavazzi , (2013) ,"Macroeconomics: A European Perspective ", Second Edition, Pearson Education Limited. - Colander and Gamber, (2006) , "Macroeconomics", Pearson Education Limited. Articles from periodicals and academic journals to supplement the textbook readings will be provided. |
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| ADDITIONAL NOTES | Pre-requisite Study-unit: ECN1021 | ||||||||
| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Josef Bonnici |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2024/5. It may be subject to change in subsequent years. |
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