Unit Code: ECN801

Unit Name: Advanced Macroeconomics

Description: The course of Advanced Macroeconomics introduces the neoclassical growth theories. Theories of endogenous growth; Growth accounting; Solow growth model; AK model; Classical theories of the business cycle; and etc. This course addresses issues such as inflation, unemployment, economic growth, consumption, central banking and exchange rates using an open economy macroeconomic framework. In this framework, it reviews in detail the traditional macroeconomic models (such as IS-LM/AD-AS model of economic fluctuations and Solow growth model), more importantly, on recent models of modern macroeconomics (such as real business cycle model, new Keynesian model and optimum growth model) that focus on optimizing behaviour, dynamics and general equilibrium. The course ascertains the key developments in the study field of macroeconomics focusing on presenting actual issues of the advanced macroeconomics covering such topics as, neoclassical theories of economic growth, technology change, exogenous versus endogenous. Then the course turns to the classical and advanced theories of business cycle, the role of monetary policy in stabilising business cycles. The course ends by analysing optimal and time-consistent inflation policy, the conduct of policy and some frictions in macroeconomics with practical examples.

Learning Target Outcomes:

Prerequisite: ECN601

Prerequisite Sentence: or consent from HOD.

Credit Point: 20

Offered In: Semester 1