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The University of Southampton

ECON3008 Macroeconomic Policy 3

Module Overview

This module provides a short course in international macroeconomics. We begin by studying exchange rates before turning to wider issues in international macro, such as the costs and benefits of participation in global capital markets; sovereign debt and currency crises; and the uses and limitations of monetary policy.

Aims and Objectives

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 sovereign default and currency crises


- 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

Learning and Teaching

Teaching and learning methods

Lectures + classes.

Independent Study122
Total study time150

Resources & Reading list

The main course reading is an Ebook which is made available on Blackboard in pdf format. Additional resources for each topic will be posted on Blackboard.. 


Assessment Strategy

80% through end of semester examination and 20% through continuous successful participation in solving problem sets. In the event of you having to resit this module, your problem set marks will not be carried forward.


MethodPercentage contribution
Coursework 20%
Examination 80%


MethodPercentage contribution
Examination 100%


MethodPercentage contribution
Examination 100%

Repeat Information

Repeat type: Internal & External

Linked modules

Pre-requisite: ECON2002


Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:

Books and Stationery equipment

Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase reading texts as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at

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