EC424 Topics in Macroeconomic Theory

Course description

Macroeconomics is concerned with the economy as a whole through the study of the aggregate variables such as national output, the general level of prices analyze major economic problems of unemployment, inflation and the unevenness of economic growth. There are several theoretical models developed to describe and solve these issues. There are fundamental differences in these theories, which have given rise to diametrically opposite policy prescriptions as solutions. This course will locate various policy regimes of the past century in the context of macroeconomic theory and analyze the theoretical underpinnings of the policy regimes that dominated various periods in the past century.

Topics

  • From Great Depression to Great Recession – An evolutionary overview of the Macroeconomic Theory
  • The Neo-Classical model
  • Keynes’ General Theory and the principle of Effective Demand
  • Keynesian short-run models
  • Monetarism Mark I: Inflation-unemployment dynamics
  • Monetarism Mark II: Rational Expectations theory and policy
  • New Keynesian models
  • New Consensus Macroeconomics
  • Post Keynesian Alternative – The Monetary Theory of Production
  • Political Economy of the current global economic crisis

Reference books

  1. Bhaduri, Amit (1986)Macroeconomics: The Dynamics of Commodity Production, London: Macmillan.
  2. Gandolfo, G (1997) Economic Dynamics, London: Springer.
  3. Mankiew, G. N (2005)Macroeconomics, VI edition, New York: Worth Publishers.
  4. Hillier, Brian (1990) The Macroeconomic Debate: Models of the Closed and Open Economy, Oxford: Blackwell.
  5. Osiatynski, J (1990) Collected Works of Michael Kalecki, London: Clarendon Press.
  6. Papadimitriou, D.B and Randall, W (2011) The Elgar Companion to Hyman Minsky, London: Edward Elgar.

Reference will be made to other textbooks and various journal articles during the course of my lectures. In addition, students will be directed to appropriate online material during the term.

Learning outcomes

  1. Analytical ability to understand complex macroeconomic theoretical models.
  2. Ability to critically engage with theoretical models and their policy prescriptions.
  3. Ability to place economic problems in the broader historical context of Globalization.

Course material

The course website is I will upload additional notes and reference material.

Tutorials

Please see the following link for tutorial information:

Assessment

  1. End of semester examination – 70 per cent
  2. Continuous assessment – 30 per cent (Assignments)

Lecturer

Dr. Srinivas Raghavendra

208, Cairnes Building, NUI Galway

Email:

Lecture hours:

Monday 11-12 ENG-2001

Tuesday 3-4pm ENG-0047

Office hours

Tuesday: 2-4pm

Wednesday: 10-12pm

Please arrange appointment by email for meeting outside the office hours.

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