Module code: ECOM060

Module Overview

This module gives the students a systematic way of thinking about macroeconomic issues and will cover the basic tools needed to study dynamic macroeconomic models; namely dynamic programming and the solution and stability analysis of linearized models. These tools will then be used to study macroeconomic theories of the business cycle, such as the Real Business Cycle model and the New Keynesian model. A brief overview of software packages Matlab and Dynare will be provided to carry out the numerical solution and simulation of the models.

Module provider


Module Leader

ZARETSKI Aliaksandr (Economics)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 7

Module cap (Maximum number of students): N/A

Overall student workload

Independent Learning Hours: 54

Lecture Hours: 33

Guided Learning: 30

Captured Content: 33

Module Availability

Semester 1

Prerequisites / Co-requisites


Module content

Indicative content includes:

  • Optimal growth model in discrete time

  • Deterministic dynamic programming and applications

  • Stochastic dynamic programming and applications

  • Recursive competitive equilibrium

  • Introduction to MATLAB and Dynare

  • The Real Business Cycle model

  • The New Keynesian model

Assessment pattern

Assessment type Unit of assessment Weighting
Examination FINAL EXAMINATION (180 MIN) 100

Alternative Assessment


Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate their understanding of the fundamental concepts of macroeconomic theory applied both in academic research and in policy institutions around the world.

Thus, the summative assessment for this module consists of:

  • A three-hour exam 

Formative assessment and feedback

Students will be offered unmarked problem sets and exercises, some of which will be discussed in class. Individual feedback on specific problems will be provided during student consultation hours.

Module aims

  • • Provide students with a thorough understanding of key macroeconomics models, concepts and results.
  • • Enable students to prepare for research in this field.
  • • Enable students to develop the skills to work independently.

Learning outcomes

Attributes Developed
001 To develop the understanding of macroeconomic theory and the theory of macroeconomic policy at a level approriate for the pursuit of a research career (ie. PhD in Economics, work in Central Banks or Investment Banks) (C,K) KC
002 Understand and interpret economic models based on rational inter-temporal optimizing behaviour of all agents (C,K,T,P) KCPT
003 Introduction to solving and simulating DSGE models using Matlab and Dynare, and use them for policy analysis (C,K,T,P) KCPT
004 Read and interpret state-of-the-art papers and books related to the material covered (K,T) KT
005 Apply the concepts, tools and results to economic problems (C,K,P) KCP

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Methods of Teaching / Learning

The learning and teaching strategy is designed to:

develop students’ independent research skills, by training them to do critical analysis of papers in scientific journals and do 'take home' problem sets, making sure concepts and methods are mastered.

The learning and teaching methods include:


The first two hours are devoted to standard teaching and focus on quantitative methods and theory. The last hour will instead be focusing on practical application and problem solving with a high interactive content.

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list
Upon accessing the reading list, please search for the module using the module code: ECOM060

Other information

This module incorporates some of the University’s five pillars of learning as follows:

Digital Capabilities:

Students in this module will learn how to use software packages Matlab and Dynare to carry out numerical solution and simulation of DSGE models.


This module will provide students with skills for placement at Central Banks, Investment Banks and Academia. The material covers research methods at the frontier of macroeconomic policy.

Lecture sessions are designed to have the final hour each week to go over practical exercises and provide students with the opportunity to apply their knowledge to real-life examples used in the industry.

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Economics MRes 1 Compulsory A weighted aggregate mark of 50% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2025/6 academic year.