BS1545: Contemporary Economic Issues

School Cardiff Business School
Department Code CARBS
Module Code BS1545
External Subject Code 100450
Number of Credits 20
Level L4
Language of Delivery English
Module Leader Professor Calvin Jones
Semester Double Semester
Academic Year 2015/6

Outline Description of Module

The Contemporary Economic Issues module provides the opportunity for Year 1 students to reinforce their understanding of economic methods and analysis. Its role is to encourage such students to stretch themselves by taking on higher level learning and teaching methods. It applies many of the theoretical ideas the students are already familiar with, from the core Macroeconomic, Microeconomic and quantitative modules to a variety of policy issues. It pulls together various elements of economic analysis, interweaving theory, data analysis and policy evaluation.

Contemporary Economic Issues aims to demonstrate how economic analysis contributes to understanding and achieving efficiency, equity and sustained development. It aims to enhance students’ study skills as a foundation for Years 2 and 3 by encouraging them to organise their time and studies effectively, to participate actively in tutorials and to deliver a substantive piece of written coursework.

On completion of the module a student should be able to

  • insight into the method, content and scope of economic analysis by covering specific topics in economics in some depth.
  • identify the value of economic analysis through an examination of the main objectives of UK economic policy and the assessment of alternative strategies.
  • an understanding and appreciation of the theoretical ideas they meet in the core macroeconomic and microeconomic modules gained by applying some of those ideas to a series of contemporary policy issues.
  • examine alternative explanations for the derivation of Western economic policy using heterodox economic theories.
  • developed, through the variety of material and of teaching/learning activities, transferable subject-specific and core skills.
  • a reflexive approach to microeconomics and macroeconomics.

How the module will be delivered

Teaching will take place in the Autumn and Spring semesters.  There are approximately 44 hours of contact comprising 36 hours of lectures and 8 hours of classes. Lectures provide students with an outline of the main course material.  Students are encouraged to read around the module topics through a series of reading from core texts, and with supporting information from satellite texts and a range of other sources.  Students must prepare answers to tutorial questions in advance, deliver brief presentations of solutions, and participate in class discussions.

Classes explore particular topic materials in more detail. Class questions typically require a mix of qualitative and qualitative answers.

Indicative study hours: 200

How the module will be assessed

Spring Exam:

Will be split into 2 sections, covering Semester 1 and 2 respectively.

Continuous Assessment:

The first semester coursework will take the form of a written assignment to be submitted in January.

The Macro coursework will take the form of a class test to be held at the end of March.

 

Assessment Breakdown

Type % Title Duration(hrs)
Exam - Spring Semester 60 Contemporary Economic Issues 3
Written Assessment 20 Coursework (Autumn) N/A
Class Test 20 Class Test (Spring) N/A

Syllabus content

The module is divided largely into Micro topics in Semester 1 and Macro topics in Semester 2, although some of the heterodox methods used do not recognise this distinction.

Topics and key economic issues covered:

Syllabus for Semester 1: Topics

  1. Introduction to CEI - The notional objectives of government microeconomic policy.
  2. Monopoly, oligopoly and competition policy - Market structure and market performance. Natural and unnatural dominance. The welfare costs of monopoly. Policy towards large firms and restrictive practices. The emergence of monopolistic competition.
  3. Inequality, equity and redistribution – Inequality of income in the UK - how do economists measure inequality and how bad is it? Poverty in the UK. Redistribution of income through taxes and benefits.
  4. Environmental policy - Policies to deal with market failure: common property resources and externalities. What has economics got to offer in designing policies to tackle climate change?
  5. The Origins of the Market – Explanations for the origin of commodified surplus exchange. Implications for the allocation of resources across society, and for the economic policies covered in block 1.

Syllabus for Semester 2: Topics

  1. Foundations of macroeconomics - National Income accounting.
  2. Equilibrium and Schools of Thought - Keynesian vs Laissez faire.
  3. Economic Growth - The Solow model and determinants of growth.
  4. Trade and development - gains from trade and strategies for development.
  5. Balance of Payments, exchange rates and Globalization - the balance of payments, currency stability, international cooperation, the Tobin Tax.
  6. Money and Interest Rates - the banking system, the creation of money, regulation and monetary policy.
  7. Sovereign Debt and Fiscal Policy - what should the level of national debt be? What are the origins of the current debt crisis?

Essential Reading and Resource List

Frank, R. and Cartwright, E. 2013. Microeconomics and behaviour. London: McGraw-Hill Education. Available at Aberconway library.

le Grand, J. et al. 2008. The economics of social problems. 4th ed. Basingstoke: Palgrave Macmillan. Available at Aberconway library.

Sloman, J. et al. 2015. Economics. 9th ed. Harlow: Pearson. Available at Aberconway library.


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