ECON325-23S2 (C) Semester Two 2023

Advanced Macroeconomics

15 points

Start Date: Monday, 17 July 2023
End Date: Sunday, 12 November 2023
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Sunday, 30 July 2023
  • Without academic penalty (including no fee refund): Sunday, 1 October 2023


ECON325 studies the economy as a whole to understand the two main areas of macroeconomics: long-run growth in the standard of living and the general level of prices, and short-run fluctuations in employment and output. The course gives particular attention to the mathematical techniques that economists use to study these areas and the microeconomic foundations that underpin much of macroeconomic analysis.

The goal of Advanced Macroeconomics is to provide students with a rigorous overview of modern macroeconomics. The course builds on the themes introduced in ECON206. The principal objective of this class is to equip students with the tools and ideas necessary to understand the aggregate economy and to make informed opinions about different economic policies. This course builds up a set of models of the economy. Students are expected to use some basic mathematical tools (algebraic manipulations, solving systems of equations, differential calculus, optimisation).

Learning Outcomes

  • To obtain a thorough and complete understanding of national economic accounts.
  • To learn about the micro-foundations of modern macroeconomics.
  • To solve two-period consumer problems using the Lagrange method.
  • To understand the Euler equation as an intertemporal first order condition for a dynamic choice problem.
  • To learn the basic concepts of economic models such as identities, behavioural equations, exogenous variables, exogenous variables and equilibrium conditions
  • To learn to solve economic models
  • To learn about the role of expectations and uncertainty in macroeconomics
  • To learn about money and its role in the economy
  • To use a set of frameworks such as the IS-LM and IS-LM-PC model to examine the effect of monetary and fiscal policy.
  • To understand the drivers of economic growth, chiefly through the lens of the Solow/neoclassical growth model.
  • To learn about the chief distinction between growth through capital accumulation and growth through technological progress.


(1) ECON206; and (2) MATH102; and (3) ECON207 or ECON208

Timetable 2023

Students must attend one activity from each section.

Lecture A
Activity Day Time Location Weeks
01 Friday 10:00 - 11:00 E12
17 Jul - 27 Aug
11 Sep - 22 Oct
Lecture B
Activity Day Time Location Weeks
01 Tuesday 15:00 - 16:00 Jack Erskine 241
17 Jul - 27 Aug
11 Sep - 22 Oct
Lecture C
Activity Day Time Location Weeks
01 Monday 10:00 - 11:00 Meremere 105 Lecture Theatre
17 Jul - 27 Aug
11 Sep - 22 Oct
Tutorial A
Activity Day Time Location Weeks
01 Tuesday 10:00 - 11:00 Psychology - Sociology 411
17 Jul - 27 Aug
11 Sep - 22 Oct

Course Coordinator

Philip Vermeulen


Assessment Due Date Percentage  Description
Assignment 30% Midterm assignment
Final Exam 50% Final exam
Assignment 20% Weekly problem sets -- given out in weeks 1,2,3,4,5,6,7,8,9,10.

Textbooks / Resources

Required Texts

Blanchard Olivier; Macroeconomics ; Eighth; Pearson, 2020.

Indicative Fees

Domestic fee $868.00

International fee $4,075.00

* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.

For further information see Department of Economics and Finance .

All ECON325 Occurrences

  • ECON325-23S2 (C) Semester Two 2023