Module Convenor: Prof Giulio Fella
The module covers a number of standard topics in macroeconomics. The module introduces the main theoretical contributions within each set of topics and critically assesses their strength and limitations in the light of the empirical evidence. The first part of the module deals with individual and aggregate consumption and saving behaviour as the outcome of optimal intertemporal choice. It uses the framework to study a number of policy issues including the effect, and optimal mix, of tax versus debt financing of government expenditure. The second part of module presents theories of firms' investment in physical capital and their implications for aggregate investment. The last part introduces two ways of looking at unemployment as an equilibrium outcome. The first view highlights the role of search frictions. The second one focuses on real wage inflexibility.
Assessment: 80.0% Examination, 20.0% Coursework