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Course Page for ECON2202: Macro Theory (Fall 2016)

Brief Description:

This course provides an introduction to the modern theory and practice of macroeconomics. It covers a variety of the central questions in macroeconomics including: What are the determinants of long-run economic growth? What determines the value of money in an economy? Why is there unemployment? 

Why do economies regularly experience booms and recessions? The course focuses particular attention on how macroeconomic policy (monetary and fiscal) affects outcomes in these dimensions, and on using the tools of the field to evaluate alternative policy responses to current events.

Office Hours: 
Wednesday, 9:00am to 10:30am: sign up here in advance
Wednesday,10:30am to 11:30am: walk-in

Course Syllabus:
This is the main syllabus.

Class activity:

Problem Sets:
Available on Canvas

Course Notes:
Available on Canvas

Lecture Topics and Readings:
Below is a detailed list of the topics we will cover and the readings associated with each lecture. This listing will be updated according to our progress and I will point out changes in class.

 Date       Topic Readings/Assignments
8/30  Introduction     
9/1Business Cycles and Financial Crises in the Data

 Mankiw: chapters 1 & 2
Production Functions and Aggregate Supply

 Mankiw: chapter 3
9/8Class cancelled from 12:00pm to 1:15pm; optional Q&A from 1:30 - 2:45. Friedman, The Role of Monetary Policy
9/13What is Money?

 Mankiw: chapter 4 
9/15Balance Sheets  Course notes: Section 4 
9/20Money Markets, Inflation, and the Fisher Equation

 Mankiw: chapter 5
9/22 Unemployment

 Feldstein, The Private and Social Costs of Unemployment
9/27 Frictional Unemployment

 Mankiw: chapter 7
 Problem Set 1 (due at start of class)
9/29 Frictional Unemployment & the Data

 Washington Post, A Brief History of US Unemployment 
10/4 Long-run Growth and the Solow Model

 Mankiw: chapter 8
10/6Long-run Growth and the Solow Model    Mankiw: chapter 9 
 Lars P. Syll blog post
10/11Review Day
 Bring your questions!
 Problem Set 2 (due at start of class)
The Velocity Theory of Money 

 Mankiw: chapter 10

10/20The IS-LM Model (Part 1)

 Mankiw: chapter 11
The IS-LM Model (Part 2) 

The IS-LM Model (Part 3) 

 Mankiw: chapter 12

11/1Monetary Policy, Quantitative easing, and the Zero-Lower Bound
 Course notes: Section 7.3
11/3Monetary Policy, Quantitative easing, and the Zero-Lower Bound

 Problem Set 3
11/8 The Neoclassical Model: Introduction

 Prescott, Noble Acceptance Essay (Section 1 "Introduction" only)
11/10Aggregate Supply and the Solow Residual

 Chapter 9 appendix (pages 270-278 in 9th ed.)
11/15The Optimizing Consumer

 Mankiw: chapter 16
11/17The Optimizing Consumer: Permanent Income

 Course notes: Section 8
11/22General Equilibrium and the First-Welfare Theorem

 Course notes: Section 9.0 though 9.3


11/29Ricardian Equivalence

 Course Notes: Section 9.4
 Prescott, Noble Acceptance Essay (Section 2 "The Transformation   of ..." only)
12/1Class cancelled


12/6Applied question chosen by class

 Problem Set 4
12/8Review Day

 Bring your questions!

12/10 (no class)