Macquarie University

Applied Macroeconomics - ECON214

This unit is designed to build upon the models developed in ECON204 but also serves as a standalone unit in applied macroeconomics. Some of the models are therefore familiar from ECON204, but they are taught here from their basics and without assumed knowledge. This unit includes a substantial introduction to the history of economic thought, allowing students to see the origins of the models they study, and therefore better understand the models themselves. It covers also IS-LM, the labour market, basic AD-AS models, the various incarnations of the Phillips Curve, and exchange rates, and culminates in the Mundell-Fleming model of an open economy. These models are illustrated by application to modern economies, both through the lectures and in a selection of papers from academic journals examined in tutorials. Students will also benefit from the development of basic skills such as short essay writing for examinations, and basic mathematical skills – all such skills are taught and practised in class, and again, require no prior knowledge. In particular, students who have not yet completed ECON204 will not be disadvantaged, and will benefit from the grounding in ECON204 models that this unit will provide. It will benefit also those seeking an introduction to the history and application of economic models, who will gain also an accompanying set of valuable general skills.