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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

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


- 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


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. The coursework will take the form of individual online tests in Blackboard. In the event of you having to resit this module, your coursework marks will not be carried forward.


MethodPercentage contribution
Coursework 10%
Coursework 10%
Exam 80%


MethodPercentage contribution
Exam 100%

Repeat Information

Repeat type: Internal & External

Linked modules

Pre-requisite: ECON2002

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