Download MACROECONOMIC THEORY days 2:00-4:00

MACROECONOMIC THEORY
[email protected]
Tel: (802)-656-0946
Office 335, Old Mill
Office Hours: Mondays 2:00-4:00
or by appointment
Class webpages: https://bb.uvm.edu/
COURSE OBJECTIVE AND DESCRIPTION
The objective of this course is the exploration and the deeper understanding of contemporary
macroeconomic issues through commonly used theoretical models.
A review of core models is followed by three extensions. Those extensions focus on the role of
expectations, the implications of openness of modern economies and economic pathologies such as
depressions. Throughout the course, the models presented are used to understand the effects of fiscal
and monetary policies on the economy. Whenever appropriate, current events are discussed in light of
macroeconomic theory.
MAIN QUESTIONS COVERED
How do fiscal and monetary policies affect the economy in the short and medium run? (IS-LM
model and AD-AS model, IS-LM model with expectations).
Do disinflation policies inevitably lead to high unemployment and recession? (Phillips curve,
Okun’s law)
How do saving and technological progress impact production and growth in the long run?
(Solow growth model).
How do expectations affect today’s interest rates, stock prices, consumption and investment?
(IS-LM model with expectations, permanent income theory, life-cycle theory, Tobin’s q).
How does the openness of the economy and exchange rate regimes affect the outcome of fiscal
and monetary policies? (Mundell-Fleming model).
What caused the recent economic crisis and what are the remedies to it? (IS-LM and The
liquidity trap).
COURSE REQUIREMENTS
Class work (5% of the semester performance)
Homework assignments (20% of the semester performance)
Midterms (25% + 25% of the semester performance)
Final (25% of the semester performance).
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The lowest homework assignment grade is dropped as well as the lowest class work
grade.
The homework assignments have to be completed by the due dates. There is about one
homework assignment per chapter. Due dates are announced in class. Since the
solutions are posted online, late work cannot be accepted.
In case there is a departmental assessment, this will be included in the homework grade
and weigh 1%.
Extra-credit opportunities are announced in class. You are expected to attend all
lectures. Homework and exams are essentially lecture based. Homework due dates are
announced in class. Class exercises cannot be made up. Therefore, missing lectures
would seriously put you at risk of failing this class.
You are responsible for checking the class website every week. It contains important
announcements and reminders, course outlines and homework material.
COURSE MATERIAL
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The Course material is available for purchase at the UVM bookstore:
MyEconlab with Pearson eText --Access Card --for Macroeconomics, 6/E, Olivier Blanchard and David
H. Johnson - ISBN-10: 0133074242 • ISBN-13: 9780133074246 - ©2013 • Prentice Hall • Access Code
Card
It includes the ebook and MyEconlab website, which includes a learning tool for each chapter as well as
course notes.
Selected press or research articles are given in class.
~ PROVISIONAL COURSE SCHEDULE ~
(Chapters from the textbook)
Week
Date
Chapter in Textbook
1
01/18-01/22
Chapter 5: Goods and Financial
Markets: The IS-LM Model
2
01/25-01/29
Chapter 5: Goods and Financial
Markets: The IS-LM Model
3
02/01-02/05
Chapter 7: The AD-AS model
4
02/08-02/12
Chapter 8: The Natural Rate of
Unemployment and the Phillips
Curve
5
02/15-02/19
Chapter 9: The Crisis
6
02/22
Midterm 1
02/22-02/26
Chapter 11: Saving, Capital
Accumulation and Output
Chapter 11: Saving, Capital
Accumulation and Output
7
02/29-03/04
8
03/07-03/11
Spring Break
9
03/14-03/18
Chapter 12: Technological Progress
and Growth
10
03/21-03/25
11
03/28
Chapter 14-16: Expectations,
Consumption, and Investment
Midterm 2
12
03/28-04/01
Chapter 14-16: Expectations,
Consumption, and Investment
04/04-04/08
Chapter 17: Expectations, Output
and Policy
Last day to withdraw: April 4
13
04/11-04/15
Chapter 18: Openness in Goods and
Financial Markets
14
04/18-04/22
Chapter 19: The Goods Market in an
Open Economy
15
04/25-04/29
Chapter 20: Output, the Interest Rate
and the Exchange Rate
16
05/02-05/04
Chapter 21: Exchange Rate Regimes
FINAL
06-MAY-2016 13:30-14:30 LAFAYE
L300
~ GRADES~
A’s: Scores superior to 90%
B’s: Scores between 80 and 90%
C’s: Scores between 70 and 80%
D’s: Scores between 60 and 70%
F’s: Scores below 60%
~ POLICIES~
You need to be aware of UVM policies by reading the UVM Rights and Responsibilities of
Undergraduate Students. I also have a few specific guidelines. You can always talk to me if you
have any questions or concerns .
Absences:
- For unexpected absences, accepted excuses with adequate documentation are:
Dean’s office excuse or unplanned athletic competition.
- If a student is not present at the time of a test or class exercise without an accepted excuse,
s/he gets a grade of zero.
Classroom Code of Conduct:
- Students need to arrive in class on time.
- I expect students to focus, participate and take notes during class.