Macroeconomic Theory

University of Otago

Course Description

  • Course Name

    Macroeconomic Theory

  • Host University

    University of Otago

  • Location

    Dunedin, New Zealand

  • Area of Study


  • Language Level

    Taught In English

  • Prerequisites

    ECON 202 and ECON 270

  • Course Level Recommendations


    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • Credit Points

  • Recommended U.S. Semester Credits
    3 - 4
  • Recommended U.S. Quarter Units
    4 - 6
  • Overview

    A paper aimed at preparing Honours students for independent study in macroeconomics. The main topics covered will be the AS/AD paradigm, new classical macroeconomics, monetary and fiscal theory and policy.

    This paper follows a modern approach to macroeconomic theory based on microeconomic foundations. In particular, we analyse the consumption, saving and labour-supply decisions of households and the employment and investment decisions of firms. We also examine aspects of aggregate behaviour depicted in dynamic general equilibrium models of an economy. Theories of the business cycle, monetary and fiscal policy, financial crises, unemployment and international macroeconomics will be discussed.

    Learning Outcomes
    After completing the paper, the successful student will be able to:
    - Describe the process of macroeconomics research and explain the role of theoretical models in that process
    - Construct and solve macroeconomic models based on microeconomics fundamentals (representative-agent, general equilibrium models)
    - Understand and analyse the underlying economic forces that drive unemployment, growth, inflation, savings, short-run fluctuations in consumption and investment, stability of the financial system and international issues
    - Use academic writing to summarise and critique the current macroeconomic literature and economic events

    Williamson, Stephen D. (2014), Macroeconomics. International (5th) edition [ISBN: 978-1-292-00045-9].
    Note: The older edition (4th) is also appropriate, but page numbers for assigned readings will be different.

Course Disclaimer

Courses and course hours of instruction are subject to change.

Eligibility for courses may be subject to a placement exam and/or pre-requisites.

Some courses may require additional fees.

Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.

Please reference fall and spring course lists as not all courses are taught during both semesters.

Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations

Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.