Department of Economics
NUI, Galway

Dr. Aidan Kane
EC213 Macroeconomics
---- Main course page
---- Course outline
---- PowerPoint slides
---- Macroeconomics links
------Tutorials
------ Assignments
------Web Project
------ Main page
------ Guidelines
------ Writing web pages
------ Posting web pages
-------- Tutorial/web groups
EC301 Irish Economy
-- Course outline
-- Sample exam paper
---- Readings
---- PowerPoint slides
----Web Project
---- Main project page
------ Projects 1999/2000
------ Projects 1998/1999
------ Irish Economy links
EC223 Introduction to Mathematical Economics
-- Course outline
-- Lecture Notes & Assignments
EC350 Research Project
-- Main Project Page
-- Programme of Work
-- Schedule 1999/2000
-- TutorialGroups
-- Format of a Project
-- Text and Type

EC213 Macroeconomics

National University of Ireland, Galway

Semester II 1999/2000

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Course outline

Introduction

This is an intermediate level course, both in drawing on your previous exposure to macroeconomics, and acting as prelude to further study. An overall theme is that macroeconomic theory is useful in helping us to understand real-world events, and in particular, to understand the role of macroeconomic policy. Specific theoretical ideas which recur are the importance of grounding macroeconomic theory in microeconomic reasoning and relatedly, the key role which economic agents' expectations of the future play in determining economic outcomes. This theory is outlined against an empirical background in which the financial sector facilitates much `real' economic activity, and in which international economic linkages, through trade in goods and services, and flows of factors of production, are central to understanding both long-run economic performance and short-run developments at a national level.

Course Outline

Numbers in brackets in the outline below are chapters from Macroeconomics: a European Text (2nd Ed.) by Michael Burda and Charles Wyplosz, Oxford University Press, 1997. This text is required reading.

This has been the required text for two years, so there should be a second-hand market.

  1. Introduction: Scope & methodology of macroeconomics, and macroeconomic data [1,2]

  2. Intertemporal Budget Constraints: related especially to theories of consumption and the Ricardian equivalence propostion [3,4]

  3. Long-run Economic Growth: including the Solow Growth Model and basic endogeneous growth theory [5]

  4. Labour Markets and Equilibrium Unemployment: with an emphasis on dynamic labour market theory [6]

  5. Real Exchange Rates: determination and impact, distinguished from nominal exchange rates [7]

  6. The Monetary Macroeconomy: including the demand for, and supply of money, financial markets and exchange rate regimes [8, 9, 18, 19]}
  7. Aggregate Demand and Supply: the basic IS/LM framework [parts of 10,11,12,13]

  8. The Political Economy of Macroeconomic Policy: expectations, credibility, time-consistency and institutions [15,16,17]

  9. European Monetary Union: exchange rate policy, consequences for fiscal policy and supply-side policy [21]

  10. Globalisation: The `new economy' debate. Trade, growth and inequality. International financial architecture and managing financial `contagion'.

Reading, Assessment etc.

In addition to the required text, you should make an effort to keep up with current economic policy issues, especially by reading The Economist which is published weekly, occasional editions of the Financial Times, as well as by reading the Irish Times and the Sunday Business Post and by watching the business/economics coverage on TV.

One component of your assessment will be a requirement to draft a small web site on a macroeconomics topic. I will be providing some classes on the basics of writing web pages and will provide more information on this soon. In the meantime, you may care to view some of the student projects on the Department's web site in relation to my EC301 Irish Economy course.

Tutorials will be structured around required assignments, of which more details soon.

My general office hours are Mondays 10--12 and Wednesdays 11--1. If these times do not suit, email me for an appointment.

Dr Aidan Kane

Room 46 (First floor) St. Anthony's.
email: aidan.kane@nuigalway.ie

Back to EC213 Macroeconomics Homepage

January 18th 2000