Microfoundations of Macroeconomics

Department of Economics, Business School

College of Social Sciences

Details

Code 08332

Level of study Second Year

Credit value 10

Semester 1

Pre-requisite modules None

Other pre-requisites Co-requisite - Microeconomics A - 03338

Module description

This course introduces elementary Game Theory and employs these notions to develop simple microeconomic models to highlight the link between Microeconomics and modern Business Cycle Theory. Topics such as Inter-temporal Household Behaviour, Macroeconomic Coordination Failure, Wage and Employment Bargaining between Industry and Labour Unions, Job Search and Unemployment, Bank Runs and Financial Crisis, and Rational Expectations and Effective Monetary Policy will be studied in depth and in response to Exogenous Macroeconomic Shocks.

Teaching and learning methods

2 x lectures per week, 1 x exercise class per fortnight