ECON2002: Economics 2B aims to present macroeconomic theory at an intermediate level and to equip students with basic theoretical models for analysing macroeconomic policy in both closed and open economies. The course also introduces different lines of research in the history of macroeconomics since World War II. Through these frameworks, students will gain a deeper understanding of the structure and development of modern macroeconomic thought.

By the end of the course, students should be able to analyse the macroeconomic implications of monetary and fiscal policies and shocks, and evaluate the role of expectations in macroeconomic theory. They will examine the relationships among key macroeconomic variables, including aggregate output, unemployment, inflation, interest rates, and exchange rates. Students will also be able to apply economic theory to discuss issues such as high inflation, high unemployment, financial crises, and events like Brexit, drawing on academic literature and policy papers. Furthermore, they will use a range of macroeconomic models to analyse historical episodes such as severe recessions and financial crises.