ECC4660

Macroeconomics

Associate Professor Dietrich Fausten

7 points
* Two 1.5-hour lectures per week
* Second semester
* Clayton

Objectives On completion of this subject students should be aware of major recent developments in the field of macroeconomics, have a basic understanding of the concepts and techniques of macroeconomic forecastingusing an applied general equilibrium (AGE) model; be aware of the major developments in the field of macroeconomics in the last ten years; be familiar with different macroeconomic models used for policy making and their points of emphasis; be able to make judicious policy predictions and undertake independent research studies in the subject.

Synopsis An overview of contemporary macroeconomics and recent policy debates, including the following issues: market clearing and long-run equilibrium; classical dichotomy; money in the global economy; aggregate demand and price rigidity, microfoundations of macroeconomics, disequilibrium models; stock-flow interactions; wealth effects; rational expectations; policy ineffectiveness and Ricardian equivalence; money and credit; exchange rate regimes; new Keynesian macroeconomics; comovements of macro variables and macroeconomic forecasting.

Assessment Written 3000-word essay): 30%
* Oral presentation: 10%
* Examination (2 hours): 60%

Preliminary reading

Dornbusch R, Fischer R and Kearney C Macroeconomics Australian edn, McGraw Hill, 1995
Gordon R Macroeconomics 6th edn, Harper Collins, 1993

Prescribed texts

Branson W Macroeconomic theory and policy 3rd edn, Harper Collins, 1989