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) 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 and the foreign exchange market. The expanded model is used to discuss issues in macroeconomic theory and policy such as role and operations of the European Central Bank (ECB) and 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.