The University of Southampton
Courses

ECON3008 Macroeconomic Policy 3

Module Overview

This is a course in international macroeconomics. The main focus is on issues of policy relevance and the experience of emerging market economies. We study these issues using a combination of economic models, case studies and empirical evidence. The course starts out with a focus on exchange rates before turning to wider issues in international macro, such as the costs and benefits of participation in global capital markets, macro policies in an open economy setting, and the causes and consequences of financial crises.

Aims and Objectives

Module Aims

• Appreciate the potential and limitations of a wide range of macroeconomic policies in an open economy setting; • Use empirical and historical evidence to evaluate different policy choices • Learn how to solve a variety of models of the open economy

Learning Outcomes

Learning Outcomes

Having successfully completed this module you will be able to:

  • Place economic policy discussions into a formal theoretical framework
  • Demonstrate knowledge and understanding of economic models at the back of a policymaker's mind and be able to critically and empirically evaluate these models
  • Demonstrate knowledge and understanding of the causes and consequences of foreign exchange market intervention, including exchange rate crises

Syllabus

- Introduction to exchange rates - The long run approach to exchange rates - The short run approach to exchange rates - The current account - Sovereign debt and default - Why doesn’t capital flow from rich to poor countries? - Macro policy under fixed and floating exchange rates - Exchange rate crises - The Global Financial Crisis

Learning and Teaching

Teaching and learning methods

Lectures + classes.

TypeHours
Independent Study122
Teaching28
Total study time150

Resources & Reading list

International Economics. 

Assessment

Assessment Strategy

80% two hour final examination and 20% coursework. There are two pieces of coursework and each will count for 10% of the final assessment. In the event of you having to resit this unit, your coursework marks will not be carried forward.

Summative

MethodPercentage contribution
Coursework 10%
Coursework 10%
Exam 80%

Referral

MethodPercentage contribution
Exam 100%

Linked modules

Pre-requisites

To study this module, you will need to have studied the following module(s):

CodeModule
ECON2002Macroeconomic Policy 2
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