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Course Page for ECON2202: Macro Theory (Fall 2017)

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.

Problem Sets and Quizzes:
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
8/29  Introduction; Business Cycles and Financial Crises in the Data     
8/31Production Functions and Aggregate Supply

 Mankiw: chapters 1 & 2
Production Functions and Aggregate Supply

 Mankiw: chapter 3
9/7Class cancelled from 12:00pm to 1:15pm;
optional Q&A from 1:30 - 2:45.
 Friedman, The Role of Monetary Policy
9/12What is Money?

 Mankiw: chapter 4 
 Problem Set 1 (due at start of class)
9/14Balance Sheets  Course notes: Section 4 
9/19Money Markets, Inflation, and the Fisher Equation

 Mankiw: chapter 5
9/21 Class activity

 (Bring a laptop if available)
9/26 Unemployment

 Feldstein, The Private and Social Costs of Unemployment
9/28 Frictional Unemployment & the Data

 Mankiw: chapter 7
10/3 Long-run Growth and the Solow Model

 Washington Post, A Brief History of US Unemployment 
10/5Long-run Growth and the Solow Model Mankiw: chapters 8, 9
10/10Endogenous Growth Lars P. Syll blog post
10/12Review Day

Bring your questions! 
Problem Set 2 (due at start of class)


10/19The IS-LM Model (Part 1)

 Mankiw: chapter 10
The IS-LM Model (Part 2) 

 Mankiw: chapter 11
The IS-LM Model (Part 3) 

 Mankiw: chapter 12

10/31Monetary Policy, Quantitative easing, and the Zero-Lower Bound
 Course notes: Section 7.3
11/2Monetary Policy, Quantitative easing, and the Zero-Lower Bound

11/7 The Neoclassical Model: Introduction

 Prescott, Noble Acceptance Essay (Section 1 "Introduction" only)
 Problem Set 3 (due at start of class)
11/9The Optimizing Consumer: Permanent Income

Course notes: Section 8
11/14Class activity: The Solow Residual

 (Bring a laptop if available) 
Chapter 9 appendix (pages 270-278 in 9th ed.)
11/16More Consumer Theory

 Mankiw: chapter 16
11/21General Equilibrium

 Course notes: Section 9.0 though 9.3


11/28General Equilibrium and the First-Welfare Theorem 
11/30Ricardian Equivalence

 Course Notes: Section 9.4
 Prescott, Noble Acceptance Essay (Section 2 "The Transformation   of ..." only)

12/5Applied question chosen by class

Problem Set 4 (due at start of class)
12/7Review Day

 Bring your questions!