Instructor: Nigel Grimwade
An introduction to macroeconomic analysis of the economy as a whole, including the determination of national income, the price level, interest rates, the money supply, and the balance of payments. The principles of monetary and fiscal policy are also examined. ECON 111 and ECON 112 are together equivalent to ECON 110.
Available in Winter 2018 and Winter 2019.
EXCLUSION No more than 6.0 units from ECON 110/6.0; ECON 111/3.0; ECON 112/3.0.
This course provides students with an introduction to the basic principles and tools of modern macroeconomic analysis. It studies the determination of aggregate economic quantities, such as the level of national output (and its rate of growth), the level of total employment and the rate of unemployment and the average price level and rate of inflation. It also examines how government policies (fiscal, monetary and exchange-rate policies) influence the aggregate behavior and performance of an economy open to trade and capital flows.
On completion of the course, students should be able to explain the main accounting framework of the national economy and the determination of the level of national income, output and employment in both the short and long run. Students should also be able to explain the role played by money and the banking system in the determination of the supply of money, the rate of interest and the price level. Next, they should be able to identify the main objectives of macroeconomic policy and examine the role played by both fiscal and monetary policy in the achievement of these objectives. Finally, students should be able to demonstrate an understanding of the the role played by the foreign sector in the determination of national income equilibrium under fixed and floating exchange rate régimes.
Experiential learning opportunities
In recent years, these have included a visit to the Bank of England, including the Bank of England Museum, and a visit to the Economics Department of Goldman Sachs, a leading investment bank in the City of London. Both included brief presentations/talks on the role played by banks and financial markets in the economy and the visit to Goldman Sachs also included an opportunity to meet with and talk to staff about careers with a bank in research and consultancy.
Students will be required to undertake regular weekly exercises individually or in groups to make use of the theoretical tools and techniques taught in the classroom to analyse specific problems and situations. Students will also be evaluated on the basis of their participation in the class discussion and on field trips. Finally, all students will be required to undertake a two-hour exam at the end of the course, which will include a short essay, a set of multiple choice questions and a few short exercises.