Principles of Economics
University of Limerick
Area of Study
Taught In English
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3
Recommended U.S. Quarter Units4
Hours & Credits
Rationale and Purpose of the Module: The purpose of this course is to introduce the student to the principles underlying the macroeconomy. This is the study of how aggregate economic variables (such as the real growth rate, inflation and unemployment) behave and inter-act and how the policy-maker (Government and Central Bank) can influence their behaviour. Following an introduction to the key macroeconomic variables and globalization, a model of how the macroeconomy operates (the theory of income determination) is developed. This model is then expanded at various stages to include the money market, the foreign exchange market and the supply-side of the economy. The expanded model is used to discuss issues in macroeconomic theory and policy such as the relative importance of fiscal, monetary and exchange rate policies. The course concludes by discussing recent trends and economic issues relating to the Irish economy.
1. Introduction GNP, business cycle, unemployment, inflation, policy constraints.
2. Globalization. Globalization issues and trends.
3. The Theory of Income Determination: Basic Model Economic models, aggregate supply and demand, natural real GNP, natural rate of unemployment, issues in the Keynesian, classical debate.
4. Consumer Theory Consumption function, the multiplier.
5. Money and Banking Money; functions, creation and control (open market operations), European Central Bank (ECB), main refinancing interest rate and the EURIBOR, Inter-bank market, ECB’s monetary policy, Taylor rule, interest rates and consumption and investment. Fiscal and monetary policy compared, crowding-out.
6. Fiscal Policy Public finances, problems in implementing a stabilisation policy, Laffer curve. fiscal policy in Ireland.
7. The Foreign Exchange Market and Exchange Rates Foreign exchange market, the determinants of exchange rates, real exchange rates, trade-weighted exchange rate index. Central Bank intervention, external reserves, fixed exchange rates, Gold standard, Bretton Woods system, the Snake system, European Monetary System. From the ECU to the Euro.
8. Purchasing Power Parity and Interest Rate Parity Theory
9. The Irish economy in the long-run.
10. The Celtic Tiger and recent economic performance of the Irish economy.
Courses and course hours of instruction are subject to change.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.
ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.
Please reference fall and spring course lists as not all courses are taught during both semesters.
Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.