Download UNIVERSITY OF VERMONT DEPARTMENT OF ECONOMICS Undergraduate Teaching Assistant (UTA):

UNIVERSITY OF VERMONT
DEPARTMENT OF ECONOMICS
EC 11
Principles of Macroeconomics
Spring 2016
Prof. Stephanie Seguino
Office: Old Mill 340
Phone: 802.656.0187
Office hours: T, 115-215pm, Th 10-11am
Undergraduate Teaching Assistant (UTA): Ian Danforth, [email protected]
SYLLABUS
COURSE OBJECTIVES
Macroeconomics examines the behavior of the economy as a whole – at the national level. Today’s economic climate
underscores the relevance of studying macroeconomics. High unemployment in the US and in other countries,
debates about deficits and debt, rising inequality, and ecological degradation all pose challenges that require public
engagement to identify viable fresh ideas and policy solutions. A key objective of EC 11 is to improve your ability to
read about current events, understand the economic issues involved, and evaluate public debates on economic
policies.
Among the topics we will explore are the determinants of economic growth and differences in income and well-being
across countries. We also will examine economic fluctuations – the causes of high unemployment and inflation, as
well as the possible remedies.
Understanding how the economy works on a macroeconomic level will help you develop well-reasoned answers to
questions like:







Is economic growth compatible with ecological sustainability?
Can government policies promote faster economic growth? Can they prevent or shorten a recession?
How do banks create money?
How did policymakers respond to the housing crisis that began in summer 2007 and to the recession that
followed?
What is the “Fed?” Has it done enough to promote economic recovery?
What are the arguments for and against budget cuts to reduce the federal deficit and debt?
Does inequality matter for economy-wide living standards?
TEXTBOOKS
The book listed below is required and will be available for sale at the bookstore.. In addition to the required text,
further reading is listed in the syllabus, and in some cases, is posted on the Blackboard (BB) site for this course. We
will occasionally watch video clips and discuss current newspaper articles in class. All such material is considered part
of required reading for the course for exam purposes.


McConnell, Brue, and Flynn (MBF). 2011. Macroeconomics (20e Edition). McGraw-Hill. ISBN: 978-0078021756.
Reich, R. (RR). 2013. Aftershock. Vintage. ISBN: 978-0345807229.
Additional Material
To apply the economic concepts you are learning, I recommend reading or listening to the following. I will on
occasion assign (on BB) a piece from a blog, op-ed, or podcast from the list below that is relevant to our course
material. There will be quizzes on assigned material.
Last revised January 8, 2016



The New York Times (www.nytimes.com) including the business section, economic articles, and op-eds by Paul
Krugman. A paper copy plus the digital version costs $50 for the semester and an online only subscription is
about $25.
The Wall Street Journal (www.wsj.com) subscription (print plus digital) costs about $30 for the semester.
For those of you who are serious about learning and understanding economics, read some economics blogs
or listen to podcasts. By listening and reading these, you will get a sense of how economists see the world and
analyze events and issues of importance in today’s world. Here are some examples that I like:
o Planet Money (http://www.npr.org/podcasts/510289/planet-money/). National Public Radio
(NPR) produces two podcasts a week and a daily blog. It is excellent.
o Triple Crisis Blog (http://triplecrisis.com/) includes blogs from a number of developed and
developing country economists.
o The Economists’ Forum (http://blogs.ft.com/economistsforum/) is hosted by Financial Times, a
premier newspaper for economics news.
GETTING HELP/ASKING QUESTIONS
My office hours are noted at the top of the syllabus. You do not need an appointment to see me during that time.
Note





For a variety of reasons, email is not efficient for communication. See me during office hours instead.
Make-up exams will be allowed only under extreme circumstances, such as illness. In order to
schedule a make-up exam you must notify me prior to the exam (this is the only case where email
communication should be used) and provide a written note from your doctor.
Please turn cell phones and computers off before class begins.
The midterm and final exam dates are written in stone, but assignment dates are tentative. Also, I
may choose to alter the chapter assignments (or omit chapters entirely) depending upon how long it
takes to cover essential material. Changes to the syllabus (if any) will be posted on Blackboard.
Large classes present a challenge, in that your individual behavior affects 140 other students. For that
reason, arrive on time and I should be alerted in exceptional circumstances of any early departures before class
begins.
ATTENDANCE
Attendance is required in order to do well in this course for a host of reasons.
 First, macroeconomics is taught in a building block fashion. In order to be able to understand the material as
it becomes more complex throughout the semester, it will be important for you to master the tools learned
early in the semester.
 Second, much of what I discuss in class in lectures is not covered in the book, including spontaneous
discussions of economic news. The textbook is only a supplement.
 Third, roughly on a weekly basis, there will be some in-class activity or assignment that will require turning in
a paper at the end of class. These assignments are not eligible to be made up if you are absent.
GRADING
DATE
ASSIGNMENT
February 18
March 29
Exam 1
Exam 2
WEIGHT
25%
25%
2
Last revised January 8, 2016
May TBA
Weekly
Feb. 25, March 22, Apr. 26
Comprehensive final exam
Recitation section attendance
Aftershock essays
25%
10%
15%
Letter grades are assigned on a straight scale:
A is 90-100 percent
B is 80-89 percent
C is 70-79 percent
D is 60-69 percent
F is 59 percent or less
+/- will be assigned at the discretion of the professor.
COURSE ASSESSMENT
An ungraded course assessment will be administered two weeks prior to the final exam. We use the results
from this brief exam to measure learning in the aggregate and compare results from upper level courses as a
way to measure retention. Exam results will not affect your course grade.
IN-CLASS ACTIVITIES
I will periodically ask you to write short answers to problems based on the lecture, or organize group exercises in class
related to the material we are studying. In-class assignments will be turned in at the end of class. There are no makeups for these assignments. Performance on these exercises will be used to help me determine grades in a borderline
case, as well as whether to assign a + or – to a grade.
WEEKLY RECITATION SESSIONS
Students are required to attend one recitation section per week. You will be assigned to a recitation group the first week
of classes and you must attend the same group each week to ensure you get credit. The goal of these sessions is to
review the material covered in lectures, with an emphasis on technical material. This will be an opportunity to get
support and practice solving problems and to discuss questions you may have about course material. These sessions
will begin approximately by January 26. In order to receive credit for attending a session, students must arrive on time
and stay for the full session. Late arrivals and early departures result in no credit.
You will be permitted one unexcused absence. Any additional absences will only be excused due to medical
emergencies and will require official documentation. Job interviews, athletic events, debate schedules, etc. are not
considered emergencies. There will be no additional review sessions for exams in this course; these sessions will
function as continuous review sessions on a weekly basis for the entire semester.
ACADEMIC INTEGRITY
Standards of academic conduct are set forth in the University's Code of Academic Integrity.
http://www.uvm.edu/policies/student/acadintegrity.pdf
3
Last revised January 8, 2016
By registering, you have acknowledged your awareness of the Academic Integrity Code, and you are obliged to
become familiar with your rights and responsibilities as defined by the Code. Violations of the Academic Integrity
Code will not be treated lightly, and disciplinary actions will be taken should such violations occur. Please see me if
you have any questions about the academic violations described in the Code in general or as they relate to particular
requirements for this course.
In writing papers, you must properly cite all sources (1) directly quoted, (2) paraphrased, or (3) consulted in any
fashion. Sources include all printed material as well as the Internet. It is also considered plagiarism if you merely
rework source material, placing an author's thoughts in other words without contributing your own ideas. For that
reason, you must include some kind of source citation or note whenever drawing on someone else's interpretation.
Preliminary course outline
The following schedule is tentative. It may be revised as the semester progresses. Additional readings may be added.
Please check this syllabus on Blackboard for updates. I update the header (top right of page) with the date the syllabus
was last revised so that you will know if you have the most recent version. All readings are required, unless otherwise
noted.
TENTATIVE COURSE SCHEDULE – SUBJECT TO CHANGE
Topics, Readings, and Assignments
Dates
1/19 – 1/21
Topic
Market System and
Circular Flow
Required Reading
MBF, Chs. 1, 2
1/26 – 1/28
Supply and Demand
MBF, Chs. 3, 4
Recommended reading/HWs
Review sessions begin.
Dighe, R. 2014. “Legalize it: The
Economic Argument.”
2/2 – 2/4
Measuring GDP
MBF, Chs. 6, 7
2/9 – 2/11
Unemployment and
Inflation
MBF, Chs. 9
2/16
The Role of Government
MBF, Chs. 4 - 5
2/18
2/25
EXAM 1
First Reich Essay Due
Reich, Part I, Chs. 1 - 5
2/23 – 3/15
The Basic Keynesian
Model
MBF, Chs. 10 & 11
3/22
Second Reich Essay
Due
Aggregate Demand &
Supply
Reich, Part I, Chs. 6 - 11
3/22 – 3/24
MBF, Ch. 12
4
“GDP and Its Discontents.” (BB)
Essay due by beginning of class. No
late assignments.
Essay due by beginning of class. No
late assignments
Last revised January 8, 2016
3/29
3/31 – 4/1
4/5
4/7 – 4/12
4/14
EXAM 2
Fiscal Policy,
Government Debt and
Deficits
Money, Banking, and
Financial Institutions
Money creation and the
multiplier
Monetary Policy
MBF, Ch. 13
MBF, Ch. 14
MBF, Ch. 15
MBF, Ch. 16
“The crisis of credit.’”
(YouTube video).
4/19 – 4/21
Economic Growth
MBF, Ch. 8, 21(only
available on web).
Carr, N. “Is Google Making Us
Stupid?” Atlantic Monthly, July/August
2008. (Google it!)
Chris Jordan, “Running the
Numbers,”
http://www.chrisjordan.com/gallery
/rtn2/#about
4/26
Third Reich Essay Due
Reich, Part II, Chs. 1 - 7
4/26 – 4/28
Inequality and Economywide Well-Being
“Geese, Golden Eggs, and
Traps: Why Inequality is Bad
for the Economy.” (BB)
5/3
TBA
Aftershock
FINAL EXAM
Reich, Part III, Chs. 1 & 2
5
Essay due by beginning of class. No
late assignments
Wisman, J. “The Growth Trap,
Ecological Devastation, and the
Promise of Guaranteed
Employment.” (BB)
Bring book to class, quiz
Last revised January 8, 2016
Guidelines for Robert Reich’s Aftershock Essays
Aftershock is an accessible book for introductory macroeconomics students to learn some of the recent
macroeconomic history of the US and the context for today’s political debates about macroeconomic policy.
The author, Robert Reich, served as Secretary of Labor under Bill Clinton, and has gone on to be an
important public figure in the arena of national economic policy. You can find a number of YouTube videos
featuring Reich, which are entertaining and informative. He also was star of a film titled “Inequality for All.”
Your reading of the book will be in sections, followed by a total of 3 essays and one final in-class assessment
to facilitate your retention and focus on key arguments.
Essay 1: Due February 25, Part I, Chs. 1 – 5.
Essay 2: Due March 22, Part I, Chs. 6 – 11.
Essay 3: Due April 26, Part II, Chs. 1 – 7
In-class quiz/assessment: May 3, covering the entire book (requiring you to finish the book by reading
Part III, Chs. 1 & 2).
Your essays are due on the date assigned above, typewritten WITH NAMES AND PAGE NUMBERS at
the beginning of class. NO LATE ASSIGNMENTS will be accepted. Papers must be typewritten, singlespaced, with a MAXIMUM length of 3 pages (Less than 2 pages is insufficient). Do NOT use direct quotes.
The essay should be in your own words.
Guiding Questions for Essays
Your essay should be a synopsis of the assigned chapters, and include answers to the following questions
(not numbered, but rather woven into the fabric of your essay).
Essay 1:





What was Eccles’ insight?
Explain why inequality matters for the health of the economy.
How does income concentrated at the top hurt the economy?
Provide data on the magnitude of inequality prior to the Great Depression and today.
Why are policymakers more focused on the financial economy than the real economy?



Describe the Great Prosperity of 1947-75 and the policies employed to achieve that.
What “mess” did we get ourselves in again, and in what 3 ways to did American families
cope with economic malaise of the post-1975 period?
Why will these coping mechanisms no longer work?

What has been or are some potential reactions to economic stagnation?
Essay 2:
Essay 3:
6
Last revised January 8, 2016


What role does growing inequality play in growing frustration with the state of our
economy?
How has this frustration affected our political debates?
In-class assessment
 Be prepared for an in-class writing assignment and discussion that links Aftershock to the
macro theory we have studied this semester. In particular, be able to link the role of
inequality to macroeconomic outcomes.
 Describe Reich’s “New Deal for the Middle Class.”
 Is there anything missing in Reich’s plan that should be addressed?
 To what extent do current political debates address the macroeconomic issues raised by
Reich?
7