Download MGMT510 COURSE OUTLINE File - Faculty of Business and

EASTERN MEDITERRANEAN UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF BUSINESS ADMINISTRATION
2012-2013 SPRING SEMESTER
COURSE CODE: MGMT 510
COURSE LEVEL: 1st SEMESTER MBA
COURSE TITLE : Macroeconomics for Managers
COURSE TYPE : AREA CORE
LECTURER : PROF. DR. SERHAN CIFTCIOGLU
CREDIT VALUE : 3 CR.HRS.
PREREQUISITIES : ECON 201
DURATION OF COURSE : ONE SEMESTER
WEB - LINK : http://fbemoodle.emu.edu.tr
OFFICE HOURS : MONDAYS : 14:30-15:20
THURSDAYS: 15.30-16.20
WEDNESDAYS :11:30-12 :20; 13.30-14.20
CATALOGUE DESCRIPTION : Short-Run fluctuations vs. Long-Run growth of an
Economy Growth Domestic Product. Keynesian consumption and saving functions.
Determinants of investment and net exports. Determination of equilibrium level of
income in simple Keynesian model and the effects of Fiscal policy and Random shocks
on macroeconomic equilibrium based on income-expenditure approach. InjectionLeakages approach to the analysis of equilibrium in simple Keynesian model. IS-LM
model of an open economy and the effects of Monetary and Fiscal policy and Random
shocks.
AIMS and OBJECTIVES : The primary goal of this course is to developed a general
model of an open economy based on Keynesian assumptions which can be used to analyze
the behaviour of fundamental macroeconomic variables such as national income,
unemployment rate, private consumption and savings, private investment spending, exports,
imports, trade balance, interest rate, exchange rate, tax revenue and budget deficit (or
surplus) of government. The second goal of the course is to expose the students to relatively
advanced material in relation to various macroeconomic topics through reading,
presentation, assignments of professional articles and sections of various books. The third
goal of the course is to improve the analytical capacity of students in terms of policy
applications of the macroeconomic model developed in class to contemporary domestic and
global economic issues.
GENERAL LEARNING OUTCOMES : On Succesful completion of this course, all
students will have developed knowledge and understanding of
a)
The main focus of macroeconomics as a discipline
b)
Definition of Gross Domestic Product
c)
The sources of Long-run economic growth
d)
Assumption behind Keynesian theory
e)
Components of aggregate demand for domestic output
f)
Keynesian consumption and saving functions and determinants of private
saving and private consumption
g)
Determinants of investment spending behavior of firms
h)
Determinants of exports, imports and net exports (trade balance)
i)
The use of simple Keynesian model based on income-expenditure
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approach in analysing equilibrium levels of income, consumption, savings,
investment, tax revenues, budget deficits (or surplus), exports, imports and
trade balance (net exports)
j)
How to apply simple Keynesian model to analyse the short-run effects of
fiscal policy and random shocks on macroeconomics equilibrium
k)
How to apply Keynesian model based on injection-leakages approach to
analyse the meaning of equilibrium and the relationship between the
current account balance, national savings and investment
l)
The application of IS-LM model to analyze the determination of
equilibrium level of income and interest rate and the short run effects of
Fiscal policy and Monetary policy and random shocks
On succesful completion of this course all students will have developed their
skills in ;
using mainstream macroeconomic models to analyze the impact of
monetary and fiscal policies of government and random shocks(originating
internally or externally) on an open economy
Analyzing the global economic developments.
Analyzing the policy issues faced by developing countries particularly in
relation to economic growth and trade deficit.
On succesful completion of this course all students will have developed their
appreciation of and respect for values and attitudes regarding the issues of ;
Analyzing complex global and domestic economic phenomena using
macroeconomic theory
Doing independent research on a macroeconomic topic and expressing the
basic findings of the literature in the form of a short paper.
Reading and understanding professional articles written by prominent
economics and presenting a summary of their basic insights in class preferably
using power point.
GRADING CRITERIA :
RELATIONSHIP WITH OTHER COURSES: The course will help the students to
improve their analytical capacity in a variety of courses such as Corporate Finance and
international business.
LEARNING &TEACHING METHOD: Lectures, power point presentations,
presentation and discussion of assigned articles in class, term paper, article reading
assignment, mid-term and final exams.
METHOD OF ASSESMENT:
Midterm
Final Exam
Article presentation
40%
45%
15%
ATTENDANCE: Attendance is compulsory. If you are absent more than 20% of class
time during the semester without legitimate excuse, you may get an F from the course. So
make an effort to attend classes regularly.
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TEXT BOOK: 1) Main Text Book: Macroeconomics, fifth edition, Hall and Taylor
2) Supplementary Text Book: Macroeconomics, 6th edition Hall and Papell
EXTENDED READING LIST:
Serhan Ciftcioglu: “Macroeconomics for Managers, EMU press, G.Magosa, 2005
INDICATIVE BASIC READING LIST:
1.
“Balance of Payment Issues” by R. Dornbusch
2.
“ The Real Exchange Rate” by Leslie Helmers
3.
“ External Shocks and Domestic Policy Response” by Paul Krugman
4.
“ Over Valuation and Trade Balance” by R. Dornbusch
5.
“ Devaluation and Inflation” by Stanley Fischer
6.
“ Exchange Reserves as Shock Absorbers” by John Williamson
7.
“ Asia’s Financial Crisis: Lessons and Policy Responses” by Ramon
Moreno, Gloria Pasadilla, and Eli Remolona
8.
“ Crisis and Poor: Socially Responsible Macroeconomics” by Nora Lustig
9.
“ Comparıson of Macroeconomic Performance of Turkey and East Asian
Countries” by Serhan Ciftcioglu and Comert Karaaslan
CONTENT AND SCHEDULE: Lectures will be held on Mondays (15.30-18.30) in RD
304. The lecture topics within the semester are as in the folowing schedule
COURSE LECTURE SCHEDULE:
WEEKS
CHAPTERS TOPICS TO BE COVERED
 What does macroeconomics study?
1-2
1,2,3
 G.N.P.
14 – 28 Feb.
Lecture Notes  Business cycles fluctuations
2013
 Short-Run vs. Long-Run Growth of the economy
 ANALYSIS OF EQUILIBRIUM (SPENDING
BALANCE) IN THE FRAMEWORK OF SIMPLE
KEYNESIAN MODEL
3-5
6
 Assumptions of the model
1 – 16 March
Lecture Notes
2013
 Components of Aggregate Demand
 Factors affecting Consumption and Savings
 Consumption and saving Function
 Factors affecting investment spending of firms.
6
6
 Government spending behavior
18 - 30 March
Article
 Net Export Function- Trade Balance2013
Presentations  Graphical representation of aggregate spending
function
7-8
03 – 13 April
 Midterm examinations
2013
 Graphical analysis and determination of equilibrium
9-10
6
level of income, consumption, savings, investment,
15 – 30 April
Article
trade balance, and budget deficit in Simple Keynesian
2013
Presentations
Model and multiplier.
 Macroeconomic effects of fiscal policy and random
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
11-12
2 - 11 May
2013
13-14
13 – 25 May
2013
7
Lecture Notes 
Article

Presentations 



7

Lecture Notes 
Article

Presentations 
shocks to autonomous components of aggregate
demand in Simple Keynesian model.
Good Market Equilibrium in the framework of IS-LM
model:
Investment Function
Net Export Function
Derivation of IS curve
Factors shifting IS curve
Money Market Equilibrium
Demand for money
Supply of money
Derivation of LM curve
Factors shifting LM curve
Macroeconomic effects of monetary and fiscal policy
in IS-LM model
EXPECTATIONS FROM STUDENTS;
1)
Article presentations: each student is expected to read, understand, and
present a summary of a professional article about macroeconomic issues until the
end of the semester. The tentative list of articles are given in the attached appendix
to the course outline.
2)
On the mid-term and final exams, you will be responsible for all the material
discussed in class. And this includes not only the formal lectures but also the
articles presented in class. And note that lectures will almost always analyze
additional material that may not be found in text book. Therefore you have to make
effort to come to class regularly and take good notes.
CRITICAL INFORMATION ABOUT COURSE MATERIAL :
Note that Lecture Notes and power point presentations of the lecturer are
available on the web address of the course. In addition, lecture notes are on sale
at bookstore. Ask for lecture notes of ‘MGMT 510, Macroeconomics for
Managers’.
Copies of the text books and articles assigned are available at INFO FM
(photocopy store right across from the university)
PLAGIARISM: This is intentionally failing to give credit to sources used in writing
regardless of whether they are published or unpublished. Plagiarism (which also includes
any kind of cheating in exams) is a disciplinary offence and will be dealt with
accordingly.
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