module specification

This module familiarises students with the main issues in macroeconomic policy choice, with particular emphasis on the European Union. The module pays particular attention to the role of the commercial banking system and its impact on the money supply and the role of the Central Bank in monetary policy implementation.

1. To familiarise students with the main issues in macro-economic policy choice.
2. To develop an awareness and understanding of Britain’s role within the EMU.
3. To provide an understanding of the macro-economic theories relating to the syllabus.
4. To develop an awareness and understanding of the role of the commercial Banking system on the  money supply.
5.  To familiarise students with the role of the Central Bank on monetary policy implementation.
6.  To develop academic and employability skills including specifically, sourcing and using academic literature, research, data collection application of knowledge, academic writing, and critical and analytical thinking. 

The British Banking System and Monetary Policy
Commercial Banks and the Supply of Money
The Demand for Money
Central Banking and the conduct of Monetary Policy
Fiscal Policy and the Budget
Monetary Policy and Fiscal Policy Interaction
International Finance and Monetary Policy
Monetary and Fiscal Policy and the Exchange Rate regime
The European Monetary System and Monetary Union
The European Central Bank and the Euro area Monetary Policy
 

The module is offered over a 15 week period. It provides an exploration of the macro-economic context of the banking and financial services industry and therefore addresses economic concepts and their policy implications.

The didactic element of the module will be delivered by a formal two hour lectures every week. These will be interactive and will involve short small group based exercises and open discussion.

The lectures will be supported by one-hour seminars.  Seminars will consolidate the lecture material and typically provide a forum for discussion of class exercises based on either theory or case studies. Some seminar time will be allocated to the use of IT resources such as the retrieval and analysis of economic data from sources such as Bloomberg.

Students will be required to prepare materials for the seminars based on the lecture themes of the previous week.   They will engage students in activities such as group work, presentations, discussion, quizzes. The aim is to engender confidence in the understanding of the underlying concepts and develop critical and analytical skills through exploration of policy. Generic skills such as group work, oral communication and data collection, numeracy will also be practiced.

Students will be supported in the development of their research and written skills in seminar classes. The University’s virtual learning platform which will be used to provide supporting class materials, cited web sources and discussion forums.

The Activity Week in week 20 will provide opportunities for students to explore relevant aspects of this module.

The module will provide opportunities for students to undertake reflective exercises on two occasions over the duration of the module. Students will be encouraged to incorporate this in their personal development plans.

On successful completion of this module students should be able to:

1. Evaluate and appreciate the scope and limitations of macro-economic policy instruments in a modern economy.

2. Analyse and apply macro-economic theories to hypothetical macro-economic situations.

3. Critically appraise Britain’s role and position within the European Monetary System and EMU.

4. Demonstrate the written, research and critical and analytical skills required for employment in the financial services industry

The assessment strategy is designed to focus on the discipline specific skills related to macroeconomic environment of the banking and finance industry. It also aims to assess generic skills  of written, research and critical and analytical skills required for employment in the financial services industry.

Diagnostic and formative assessment will take place on a weekly basis in seminars to develop theoretical, analytical and oral and written communication skills.

Summative and formative assessment will take place with the submission in week 22 of coursework in the form of an individual research essay of 2500 words. This will assess theoretical an practical understanding of the discipline and the ability of the candidate to undertake self-managed research activities including, literature review, data collection, written communication and critical and analytical abilities. 

Summative assessment will take place in week 29-30 with a two hour unseen exam. This will primarily assess detailed knowledge and understanding of the discipline specific material and the candidate’s written communication skills

Artis M & Nixson F, Fourth Edition “The Economics of the European Union” Oxford University Press, 2007
Artis M & Lewis M “Money in Britain” Prentice Hall 1991
Blanchard O, “Macroeconomics” Prentice Hall, 2009.
Burda M & Wyplosz C, Fifth Edition “Macroeconomics – A European TexT” Oxford University Press, 2009.
Dornbusch R & Fischer S, Eleventh Edition “Macroeconomics” McGraw-Hill, 2011.
Handa J, Monetary Economics, Second Edition, Routledge, 2009
Jones Charles I, Macroeconomics 2nd ed, w. w. Norton 2011.
Parkin M & Bade R “Modern Macroeconomics” Philip Allen, 2001

Bloomberg

Periodicals/Papers
Financial Times
Economist

Internet Addresses
Bank of England http://www.bankofengland.co.uk
HM Treasury http://www.hm-treasury.gov.uk
European Commission http://europa.eu.int/comm./index
European Parliament http://www.europarl.eu.int