Macroeconomics III - ECO00002H

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  • Department: Economics and Related Studies
  • Module co-ordinator: Prof. Subir Chattopadhyay
  • Credit value: 20 credits
  • Credit level: H
  • Academic year of delivery: 2019-20

Module will run

Occurrence Teaching cycle
A Autumn Term 2019-20 to Summer Term 2019-20

Module aims

Macroeconomics II introduced the IS-LM model and its generalisations to include labour markets, dynamics and international trade, and showed how that model could be used to formulate economic policy. It also introduced the Solow model of growth.
Macroeconomics III introduces general equilibrium and information economics to macro models as this allows the behaviour of the model to be understood in terms of economic fundamentals.
Term 1 of Macroeconomics III introduces the optimal growth model. It continues with other growth models which emphasise shocks to the economy. Finally, an introduction to real business cycle theory is provided.
Term 2 of Macroeconomics III concentrates attention on three issues:
Intergenerational trade, social security and capital formation studied within the framework of an overlapping generation model with production
The efficiency wage approach and the search approach to labour markets
The role of liquidity and collateral in the economy

Module learning outcomes

On completing the module a student will be able to:

  • Understand some modern macroeconomic models with micro-foundations
  • Comment on some policy debates in macroeconomics


Task Length % of module mark
University - closed examination
Macroeconomics III
3 hours 100

Special assessment rules



Task Length % of module mark
University - closed examination
Macroeconomics III
3 hours 100

Module feedback

Information currently unavailable

Indicative reading

Term 1: Chapters of sections from:

  • Romer, D. (1996). Advanced Macroeconomics. McGraw Hill.
  • Wickens, M R. (2008). Macroeconomic Theory: A Dynamic General Equilibrium Approach. Princeton University Press.

Term 2:

  • Blanchard, O. & Fischer, S. (1989). Lectures in Macroeconomics. MIT Press.
  • Freixas, C. & Rochet, J C. (1997). Microeconomics of Banking. MIT Press.
  • Romer, D. (1996). Advanced Macroeconomics. McGraw Hill.

The information on this page is indicative of the module that is currently on offer. The University is constantly exploring ways to enhance and improve its degree programmes and therefore reserves the right to make variations to the content and method of delivery of modules, and to discontinue modules, if such action is reasonably considered to be necessary by the University. Where appropriate, the University will notify and consult with affected students in advance about any changes that are required in line with the University's policy on the Approval of Modifications to Existing Taught Programmes of Study.