ECO 320L • MACROECONOMIC THEORY
10:00 AM-11:30 AM
THIS DESCRIPTION AND THIS PROFESSOR REFERS TO SECOND SUMMER SESSION. This course builds on the material presented in Introduction to Macroeconomics (ECO 304L). Major theoretical concepts, analysis tools, and empirical regularities are explored in the context of seven case studies. The first case study presents stylized facts of long-run economic growth in the United States and former Soviet Union. The second case demonstrates how changes in the nature of technological progress might account for the contrasting performance of the two economies. Case three examines the role of financial markets, emphasizing that the long-run is created as people respond to short-run circumstances. The fourth case applies the concept of a New Economy to the current recession in the U. S. Case five continues the examination of the business cycle in the New Economy. In the final two cases, expectations and resulting dynamic interactions are highlighted in the treatment of international flows of goods and financial assets, the labor market, and economic growth. By the end of the semester, students should be able to address three sets of questions. (1) What determines the performance of an economy (e.g., its growth rate, its unemployment rate)? (2) What are the likely consequences of various government policies (regarding the supply of money, budget deficits, etc.)? (3) What are macroeconomists saying about current issues (e.g., globalization, prolonged recession in Japan)?