This course is an introduction to macroeconomics, with a strong emphasis on policy implications. The course has two objectives. Firstly, it will develop simple models of goods and services, assets, capital and money markets which can be usefully applied to generate realistic predictions regarding the behaviour of macroeconomic variables such as: output; employment; inflation; the current account; and interest and exchange rates.

Secondly, the course will teach students to use these models to understand and interpret current and historical macroeconomic developments. Current macroeconomic developments and policy changes such as the financial and banking crisis, inflation targeting, austerity measures, deficit financing among others will be discussed.