This course introduces contemporary theory for examining central questions in macroeconomics: growth, unemployment, inflation and fluctuations.

Upon successful completion of this course students should
• Be familiar with the main macroeconomic models used to study economic growth and the business cycle
• Be able to formulate in general equilibrium simple intertemporal models of household and firm behaviour
• Understand the key shocks and propagation mechanisms present in business cycle models
• Be able to solve and employ simple stochastic business cycle models to address questions about the macro-economy

The assessment structure is as follows:

• Tutorial problem sets/assignments (10%) {Up to 5 compulsory problem sets, and if time permits, some computer-related problems. You are encouraged to form study groups but you must submit individual answers.}
• Mid semester exam (30%)
• Final exam (60%)

12 hours per week

You are expected to have adequate mathematical skills (e.g. linear algebra, calculus, basic probability and statistics) at the high-school and/or rst-year mathematics level. If you have forgotten these skills, you must brush up on them before the semester begins. There is also a summer mathematics refresher course available from the School of Economics.

Please see Course Website