MSc in International Economics and Public Policy

The MSc in International Economics and Public Policy provides training in modern economics and public policy analysis as they are applied to economic policy and international economic problems in the real world.

The MSc in International Economics and Public Policy will be of particular interest to recent graduates who wish to specialise in microeconomics, international economics and public policy. It will also be advantageous for those who graduated less recently and are currently working in government, or other private or public sector bodies such as a regulatory institution or in the corporate world.

In the autumn semester students follow four core modules in Micro- and Macroeconomics, Quantitative Methods and the Economics of Public Policy.

In the spring semester, students take three core modules and one elective modules.
Following the taught component, students then complete a dissertation on a suitable economics topic.

In the autumn semester students follow four core modules in Micro- and Macroeconomics, Quantitative Methods and the Economics of Public Policy.

Autumn Semester

Four compulsory modules

Macroeconomics

This module provides a solid understanding of macroeconomic analysis and its application to monetary and financial issues. Topics covered include: a review of the basics of income and interest rate determination; aggregate demand and supply, and open economy macroeconomics continuing with macroeconomic policy analysis; expectations in macroeconomics; business cycles; policy credibility and reputational aspects of policy.

Quantitative methods

This module provides theoretical and practical training in mathematical and econometric methods and their application to monetary and financial problems. Topics covered include: a review of basic mathematical and statistical methods: the linear regression model, static and dynamic models; specification tests; simultaneous equations and forecasting, with applications to problems in banking and finance. This module is taught so that material will be accessible to any reasonably numerate student. The emphasis is on teaching students how to conduct practical quantitative research projects for themselves.

Quantitative methods

This module provides theoretical and practical training in mathematical and econometric methods and their application to monetary and financial problems. Topics covered include: a review of basic mathematical and statistical methods: the linear regression model, static and dynamic models; specification tests; simultaneous equations and forecasting, with applications to problems in banking and finance. This module is taught so that material will be accessible to any reasonably numerate student. The emphasis is on teaching students how to conduct practical quantitative research projects for themselves.

Microeconomics: Economics of Uncertainty

This module provides a solid understanding of microeconomic analysis and its application to the analysis of uncertainty. Topics covered will include: theory of the consumer; choice under uncertainty; efficient allocation of risk; asset markets, adverse selection and moral hazard; the principal-agent model; signalling and screening.

Spring Semester

Three compulsory modules

International Trade

This module will examine all the main aspects of international trade. Starting with neo-classical trade theory, the module then moves on to look at the new trade theory, which emphasises economies of scale and imperfect competition, then analyses strategic trade policy. Finally, the module will focus on firms within the global economy, and the extent to which the actions of multinational enterprises can influence trade and growth.

Applied Microeconomics

This module develops students’ abilities in applying microeconomic analysis to economic data using statistical techniques. Topics covered include: links between theory and empirical testing, the use of regression analysis using cross-section data, and problems in regression analysis. Examples are given to illustrate each topic considered. Students will also be taught the use of a statistical package such as Stata.

Issues in Public Policy

This module addresses current issues in public policy in a number of policy areas. Topics vary from year to year but may include: regulation and privatization; productivity performance and industry growth; developments in the European Union; capital markets and the financial system; the effectiveness of fiscal and monetary policy, policies to deal with poverty and supply-side macroeconomic policy.

And one elective module from

Development Finance

This module provides training in the economic underpinnings of the financial issues which affect developing countries. Topics include: economic development strategy; project evaluation; domestic and external sources of finance; taxation and public sector control; central banking in developing countries; regulation and credit control; financial deepening; exchange rate and interest rate management; financial market development.

International Finance

This module is concerned with the financial operations of enterprises in the foreign exchange market. It provides an analytical background for the evaluation of the mainstream theories of exchange rate determination and links these to domestic and international macroeconomic policies. Topics include: the macroeconomics of the open economy; exchange rate fundamentals; theories of spot and forward exchange rate determination; currency options; FOREX.

Economic Forecasting

This module provides training in the methods of forecasting used in commercial enterprises. It also introduces the methods of macroeconomic forecasting. Topics include: univariate techniques; extrapolation, charting, Box-Jenkins; the use of survey information, leading indicators, and futures and forward markets; Black-box and VAR methods; econometric models, combining forecasts, the ragged edge problem and signal extraction; nonlinear modelling. This module is recommended only for those students who have an undergraduate background in economics.

Principles of Money and Banking

This module provides the theoretical background in monetary economics and finance. Topics include: review of the definition of money, properties of a monetary economy, measurement of money; the neutrality of money, the invalid classical dichotomy, the real balance effect, money-in-the-utility function, the cash-in-advance model, overlapping generations model of money; the classical quantity theory, liquidity preference, Baumol, Tobin, precautionary demand, Miller-Orr model, buffer stocks model; money supply determination, intermediate targets, interest rate pegging and price level determinacy; rules versus discretion, time inconsistency, reputation and credibility, central bank independence, desirability of a conservative central banker, optimal contracts for central bankers; the lending channel and the Bernanke and Gertler model.

Following the taught component, students then complete a dissertation on a suitable economics topic.

Dissertation

Students will be required to submit a dissertation of not more than 20,000 words. This gives students a chance to explore a particular topic in depth and provides them with the opportunity to test the applicability of their new learning whilst under close supervision.

Assessment

The taught component of the programme is examined by both assessed work and university written examinations which are held at the end of each semester. The assessed work includes one or more of the following: essay, group work project, individual project or class test. In addition, attendance and presentations at the dissertation residential conference are assessed. Candidates who satisfy the examiners will proceed to the project stage of the programme and prepare for a dissertation.

Residential Programme

Dissertation proposals are presented and reviewed at a residential conference at Gregynog Hall in mid Wales. This secluded university conference centre is based in a Victorian country hall in maintained grounds is an ideal location for group working and study sessions. Attendance and presentations are assessed.