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Jason Abrevaya, Chair 2225 Speedway, Stop C3100, Austin, TX 78712 • Admin: 512-471-3211 & Advising: 512-471-2973

Beatrix Paal

Lecturer Ph.D., Cornell University

Lecturer and MA Program Director
Beatrix Paal

Contact

ECO 304L • Intro To Macroeconomics-Honors

34680 • Spring 2014
Meets MWF 900am-1000am SAC 1.402
show description

Please note the following information is taken from the syllabus from Geraci’s regular  Eco 304L class (last taught in the spring of 2001) only to indicate the topics.  The textbook  may be different for the honors class, and the homework will be more intensive.  The exams for the honors class will include technical essays as well as multiple choice items.  Professor Geraci probably will not require a research paper. Students with specific concerns should contact the Professor.

 

Section IA.  The MacroeconomyB.  National Output and IncomeC.  Unemployment and InflationD.   Aggregate Expenditure AnalysisE.  Fiscal Policy

Section IIA. The Money SupplyB.  Money on Demand and the Interest RateC.  Monetary Links to the Goods MarketD.  Aggregate Demand and Supply Analysis

 Section IIIA.  Budget Deficits and the DebtB.  Modern DebatesC.  International TradeD.  Open-Economy Macroeconomics

ECO 304L • Intro To Macroeconomics-Honors

34690 • Spring 2014
Meets MWF 900am-1000am SAC 1.402
show description

Please note the following information is taken from the syllabus from Geraci’s regular  Eco 304L class (last taught in the spring of 2001) only to indicate the topics.  The textbook  may be different for the honors class, and the homework will be more intensive.  The exams for the honors class will include technical essays as well as multiple choice items.  Professor Geraci probably will not require a research paper. Students with specific concerns should contact the Professor.

 

Section IA.  The MacroeconomyB.  National Output and IncomeC.  Unemployment and InflationD.   Aggregate Expenditure AnalysisE.  Fiscal Policy

Section IIA. The Money SupplyB.  Money on Demand and the Interest RateC.  Monetary Links to the Goods MarketD.  Aggregate Demand and Supply Analysis

 Section IIIA.  Budget Deficits and the DebtB.  Modern DebatesC.  International TradeD.  Open-Economy Macroeconomics

ECO 304L • Intro To Macroeconomics-Honors

34250 • Spring 2013
Meets MWF 1100am-1200pm WCH 1.120
show description

ANALYSIS OF THE ECONOMY AS A WHOLE (ITS ORGANIZATION AND THE BASIC FORCES INFLUENCING ITS GROWTH AND DEVELOPMENT); MONEY AND BANKING, NATIONAL INCOME, PUBLIC FINANCE, AND INTERNATIONAL LINKAGES.

PREREQUISITE: ECONOMICS 304K WITH A GRADE OF AT LEAST C-.

DESIGNED TO ACCOMMODATE 100 OR MORE STUDENTS.

This course is designed to introduce students to the vocabulary, concepts and models of analysis of macroeconomics. We will discuss the behavior of the aggregate economy, particularly the Gross Domestic Product; Consumption; Savings; Investment,Unemployment; Inflation; the role of the Monetary System and and Policy, the role of Taxes, Government Spending and Fiscal Policy; the National Debt and Government Budget Deficits and Surpluses; Exports, Imports and International Trade.

 

ECO 304L • Introduction To Macroeconomics

34255 • Spring 2013
Meets MWF 900am-1000am SAC 1.402
show description

ANALYSIS OF THE ECONOMY AS A WHOLE (ITS ORGANIZATION AND THE BASIC FORCES INFLUENCING ITS GROWTH AND DEVELOPMENT); MONEY AND BANKING, NATIONAL INCOME, PUBLIC FINANCE, AND INTERNATIONAL LINKAGES.

PREREQUISITE: ECONOMICS 304K WITH A GRADE OF AT LEAST C-.

DESIGNED TO ACCOMMODATE 100 OR MORE STUDENTS.

This course is designed to introduce students to the vocabulary, concepts and models of analysis of macroeconomics. We will discuss the behavior of the aggregate economy, particularly the Gross Domestic Product; Consumption; Savings; Investment,Unemployment; Inflation; the role of the Monetary System and and Policy, the role of Taxes, Government Spending and Fiscal Policy; the National Debt and Government Budget Deficits and Surpluses; Exports, Imports and International Trade.

 

ECO 304L • Introduction To Macroeconomics

34260 • Spring 2013
Meets MWF 1100am-1200pm WCH 1.120
show description

ANALYSIS OF THE ECONOMY AS A WHOLE (ITS ORGANIZATION AND THE BASIC FORCES INFLUENCING ITS GROWTH AND DEVELOPMENT); MONEY AND BANKING, NATIONAL INCOME, PUBLIC FINANCE, AND INTERNATIONAL LINKAGES.

PREREQUISITE: ECONOMICS 304K WITH A GRADE OF AT LEAST C-.

DESIGNED TO ACCOMMODATE 100 OR MORE STUDENTS.

This course is designed to introduce students to the vocabulary, concepts and models of analysis of macroeconomics. We will discuss the behavior of the aggregate economy, particularly the Gross Domestic Product; Consumption; Savings; Investment,Unemployment; Inflation; the role of the Monetary System and and Policy, the role of Taxes, Government Spending and Fiscal Policy; the National Debt and Government Budget Deficits and Surpluses; Exports, Imports and International Trade.

 

ECO 304L • Introduction To Macroeconomics

34135 • Fall 2012
Meets MWF 1000am-1100am SAC 1.402
show description

ANALYSIS OF THE ECONOMY AS A WHOLE (ITS ORGANIZATION AND THE BASIC FORCES INFLUENCING ITS GROWTH AND DEVELOPMENT); MONEY AND BANKING, NATIONAL INCOME, PUBLIC FINANCE, AND INTERNATIONAL LINKAGES.

PREREQUISITE: ECONOMICS 304K WITH A GRADE OF AT LEAST C-.

DESIGNED TO ACCOMMODATE 100 OR MORE STUDENTS.

This course is designed to introduce students to the vocabulary, concepts and models of analysis of macroeconomics. We will discuss the behavior of the aggregate economy, particularly the Gross Domestic Product; Consumption; Savings; Investment,Unemployment; Inflation; the role of the Monetary System and and Policy, the role of Taxes, Government Spending and Fiscal Policy; the National Debt and Government Budget Deficits and Surpluses; Exports, Imports and International Trade.

ECO 304L • Intro To Macroeconomics-Honors

34153 • Spring 2012
Meets MWF 900am-1000am SAC 1.402
show description

ANALYSIS OF THE ECONOMY AS A WHOLE (ITS ORGANIZATION AND THE BASIC FORCES INFLUENCING ITS GROWTH AND DEVELOPMENT); MONEY AND BANKING, NATIONAL INCOME, PUBLIC FINANCE, AND INTERNATIONAL LINKAGES.

PREREQUISITE: ECONOMICS 304K WITH A GRADE OF AT LEAST C-.

DESIGNED TO ACCOMMODATE 100 OR MORE STUDENTS.

This course is designed to introduce students to the vocabulary, concepts and models of analysis of macroeconomics. We will discuss the behavior of the aggregate economy, particularly the Gross Domestic Product; Consumption; Savings; Investment,Unemployment; Inflation; the role of the Monetary System and and Policy, the role of Taxes, Government Spending and Fiscal Policy; the National Debt and Government Budget Deficits and Surpluses; Exports, Imports and International Trade.

 

ECO 304L • Intro To Macroeconomics-Honors

34154 • Spring 2012
Meets MWF 1100am-1200pm WEL 1.308
show description

ANALYSIS OF THE ECONOMY AS A WHOLE (ITS ORGANIZATION AND THE BASIC FORCES INFLUENCING ITS GROWTH AND DEVELOPMENT); MONEY AND BANKING, NATIONAL INCOME, PUBLIC FINANCE, AND INTERNATIONAL LINKAGES.

PREREQUISITE: ECONOMICS 304K WITH A GRADE OF AT LEAST C-.

DESIGNED TO ACCOMMODATE 100 OR MORE STUDENTS.

This course is designed to introduce students to the vocabulary, concepts and models of analysis of macroeconomics. We will discuss the behavior of the aggregate economy, particularly the Gross Domestic Product; Consumption; Savings; Investment,Unemployment; Inflation; the role of the Monetary System and and Policy, the role of Taxes, Government Spending and Fiscal Policy; the National Debt and Government Budget Deficits and Surpluses; Exports, Imports and International Trade.

 

ECO 304L • Introduction To Macroeconomics

34160 • Spring 2012
Meets MWF 1100am-1200pm WEL 1.308
show description

ANALYSIS OF THE ECONOMY AS A WHOLE (ITS ORGANIZATION AND THE BASIC FORCES INFLUENCING ITS GROWTH AND DEVELOPMENT); MONEY AND BANKING, NATIONAL INCOME, PUBLIC FINANCE, AND INTERNATIONAL LINKAGES.

PREREQUISITE: ECONOMICS 304K WITH A GRADE OF AT LEAST C-.

DESIGNED TO ACCOMMODATE 100 OR MORE STUDENTS.

This course is designed to introduce students to the vocabulary, concepts and models of analysis of macroeconomics. We will discuss the behavior of the aggregate economy, particularly the Gross Domestic Product; Consumption; Savings; Investment,Unemployment; Inflation; the role of the Monetary System and and Policy, the role of Taxes, Government Spending and Fiscal Policy; the National Debt and Government Budget Deficits and Surpluses; Exports, Imports and International Trade.

 

ECO 304L • Introduction To Macroeconomics

34170 • Spring 2012
Meets MWF 900am-1000am SAC 1.402
show description

ANALYSIS OF THE ECONOMY AS A WHOLE (ITS ORGANIZATION AND THE BASIC FORCES INFLUENCING ITS GROWTH AND DEVELOPMENT); MONEY AND BANKING, NATIONAL INCOME, PUBLIC FINANCE, AND INTERNATIONAL LINKAGES.

PREREQUISITE: ECONOMICS 304K WITH A GRADE OF AT LEAST C-.

DESIGNED TO ACCOMMODATE 100 OR MORE STUDENTS.

This course is designed to introduce students to the vocabulary, concepts and models of analysis of macroeconomics. We will discuss the behavior of the aggregate economy, particularly the Gross Domestic Product; Consumption; Savings; Investment,Unemployment; Inflation; the role of the Monetary System and and Policy, the role of Taxes, Government Spending and Fiscal Policy; the National Debt and Government Budget Deficits and Surpluses; Exports, Imports and International Trade.

 

ECO 320L • Macroeconomic Theory

34130 • Fall 2011
Meets MWF 1100am-1200pm UTC 2.102A
show description

THEORY OF THE DETERMINATION OF NATIONAL INCOME, EMPLOYMENT, AND THE PRICE LEVEL, WITH POLICY IMPLICATIONS. REQUIRED OF STUDENTS MAJORING IN ECONOMICS.

PREREQUISITE: ECONOMICS 420K WITH A GRADE OF AT LEAST C-.

The purpose of this course is to further students' understanding of the central ideas of macroeconomics.  We will study long-run economic growth and short-run economic fluctuations.  Once we have a basic understanding of these phenomena, we will discuss the main macroeconomic tools of the government, fiscal policy and monetary policy.  By the end of the semester, students should be able to critically read articles on current economic issues that appear in publications such as The New York Times, The Wall Street Journal, and The Economist.

ECO 320L • Macroeconomic Theory

34410 • Spring 2011
Meets MWF 1000am-1100am UTC 3.122
show description

THEORY OF THE DETERMINATION OF NATIONAL INCOME, EMPLOYMENT, AND THE PRICE LEVEL, WITH POLICY IMPLICATIONS. REQUIRED OF STUDENTS MAJORING IN ECONOMICS.

PREREQUISITE: ECONOMICS 420K WITH A GRADE OF AT LEAST C-.

The purpose of this course is to further students' understanding of the central ideas of macroeconomics.  We will study long-run economic growth and short-run economic fluctuations.  Once we have a basic understanding of these phenomena, we will discuss the main macroeconomic tools of the government, fiscal policy and monetary policy.  By the end of the semester, students should be able to critically read articles on current economic issues that appear in publications such as The New York Times, The Wall Street Journal, and The Economist.

ECO 320L • Macroeconomic Theory

34415 • Spring 2011
Meets MWF 1100am-1200pm UTC 3.122
show description

THEORY OF THE DETERMINATION OF NATIONAL INCOME, EMPLOYMENT, AND THE PRICE LEVEL, WITH POLICY IMPLICATIONS. REQUIRED OF STUDENTS MAJORING IN ECONOMICS.

PREREQUISITE: ECONOMICS 420K WITH A GRADE OF AT LEAST C-.

The purpose of this course is to further students' understanding of the central ideas of macroeconomics.  We will study long-run economic growth and short-run economic fluctuations.  Once we have a basic understanding of these phenomena, we will discuss the main macroeconomic tools of the government, fiscal policy and monetary policy.  By the end of the semester, students should be able to critically read articles on current economic issues that appear in publications such as The New York Times, The Wall Street Journal, and The Economist.

ECO 320L • Macroeconomic Theory

33410 • Fall 2010
Meets MWF 1100am-1200pm UTC 2.102A
show description

THEORY OF THE DETERMINATION OF NATIONAL INCOME, EMPLOYMENT, AND THE PRICE LEVEL, WITH POLICY IMPLICATIONS. REQUIRED OF STUDENTS MAJORING IN ECONOMICS.

PREREQUISITE: ECONOMICS 420K WITH A GRADE OF AT LEAST C-.

 

The purpose of this course is to further students' understanding of the central ideas of macroeconomics.  We will study long-run economic growth and short-run economic fluctuations.  Once we have a basic understanding of these phenomena, we will discuss the main macroeconomic tools of the government, fiscal policy and monetary policy.  By the end of the semester, students should be able to critically read articles on current economic issues that appear in publications such as The New York Times, The Wall Street Journal, and The Economist.

ECO 320L • Macroeconomic Theory

33585 • Spring 2010
Meets MWF 1000-1100 UTC 3.122
show description

 

 ECO 320L Macroeconomic Theory – Syllabus (Preliminary)

 

SPRING 2010

 

 

 

lectures meet:

33585: MWF 10:00-11:00, UTC 3.122

33590: MWF 11:00-12:00, UTC 3.122

you may attend either of the lectures regardless of which section you are officially signed up for

office hours

M 1:30 – 3:30

Professor Beatrix Paal 475-8531; BRB3.114 professorpaal@gmail.com

 

 

 

 

     TBA

 

 

 

     TBA

 

teaching assistants

Kaveh Majlesi

475-8554; BRB 4.116 kaveh.majlesi@gmail.com

 

Ina Taneva

; BRB 3.134G ina.taneva@mail.utexas.edu

 

         

 

 Overview

The purpose of this course is to further your understanding of the central ideas of macroeconomics. We will study long-run economic growth and short-run economic fluctuations. Once we have a basic understanding of these phenomena, we will discuss the main macroeconomic tools of the government, fiscal policy and monetary policy. By the end of the semester, you should be able to critically read articles on current economic issues that appear in publications such as The New York Times, The Wall Street Journal, and The Economist.

This course requires analytical thinking. Calculus is a must, although the inclination for abstract reasoning will be more important than specific technical skills. Econ 420K is a strict prerequisite. There will be two midterms, a final, 11 quizzes and three optional problem sets. All these will count toward your grade.

 Topics

The semester will be divided into three segments, with the following topics covered in each:

Segment One

 

 

some basic tools the aggregate production function and the labor market consumption and saving

Segment Two

investment demand and the goods market asset market, some banking theory business cycle empirics the classical version of the IS/LM/FE model

Segment Three

Keynesian view of business cycles and government policies open economies economic growth

Textbook and supplements

The required textbook for the class is Andrew B. Abel, Ben S. Bernanke and Dean Croushore, Macroeconomics, 6th edition, published by Addison Wesley. This textbook has the best balance between coverage of the results of modern macroeconomic theory and practical applications. The 6th edition is available with or without the so called Update Booklet, and either version of the book is fine. (The update booklet is already outdated, and I will provide more up-to-date materials instead.)

You can find both new and as used copies of the book from many online sources. The co-op will carry a “value edition” version of the book, which is basically a cheaper, 3-hole punched, unbound edition. (The co-op order is delayed, so unless you have a reason to buy it from them, it makes sense to look elsewhere.) The e-text version of the book is available from CourseSmart.com. I believe there is also an international edition of the printed book, available on the gray market. Try googling the ISBN for the book.

New copies of the book contain an access code to the MyEconlab website. This is a very useful tool for practicing the material, and I highly recommend it. If you buy a used book, you can still purchase access to MyEconlab directly at the myeconlab.com website. You need the ID: XL0G-H1JP-601Y-48Y2 to get to our course. There will be no graded work that is available only through MyEconlab.

If the textbook options are not overwhelming enough yet, note that you can buy the e-text and/or the value edition of the textbook through first registering for MyEconlab at myeconlab.com, using the above course ID.

As an alternative to MyEconlab, I highly recommend the Study Guide associated with the textbook. It has excellent summaries of the chapters and many practice problems. Another good source of practice questions is the companion website: http://wps.aw.com/aw_abelbern_macroecon_6/ .

Course website

The official website of the course will be on Blackboard. Please refer to that website for the most up-to-date information, announcements, handouts, problem sets etc. I sent an email to you about the textbook through Blackboard. If you did not receive that email, then please see me to make sure you are registered on Blackboard. (Note: even if you are on the waitlist for the course or for some reason have not registered officially yet, I can grant you access to the Blackboard site manually. Please see me.)

Grading

There will be two midterms and a final. The first midterm (2/17) will cover material up to and including lecture 13. The second midterm (3/31) will cover lectures 14-26. The final will be comprehensive, but will draw more heavily on lectures 27 and after.

In addition, I will also give eleven online quizzes through Blackboard, of which the best ten will count towards your grade. These will mostly draw from material from the most recent week(s), and are intended to cover the entire required material. There will also be three extra credit problem sets, aimed at the more ambitious students, with problems that go somewhat beyond material directly covered in class. Assignments will be posted on Blackboard and generally will be due in about a week, in class. Late homework will not be accepted. You are allowed, and in fact encouraged, to work on the problems in groups. However, the quizzes are often randomized, so you need to make sure you input the answer to your own version of the question. If you choose to do the extra credit problem sets, you must write up your own answer and cannot copy from someone else, even if you worked with that person together.

My policy on quizzes means that if you need to, you can drop one of them altogether. BUT: First, there will be no other exceptions. If you use up your drop opportunity early, you will not be excused from a later quiz even if you then have a legitimate reason. Second, the main purpose of quizzes is to give you practice with the material. It is in your interest to do them and get feedback on your progress. So, please use the drop option wisely over the semester. After a quiz deadline passes, I will repost the same quiz as a set of practice questions for the upcoming midterm or final. Even if you dropped the quiz initially, it makes sense to do it as a practice.

The breakdown of scores is as follows:

• First midterm (covers Segment One) 25%

• Second midterm (covers Segment Two) 25%

• Final (comprehensive; higher weight on Segment Four) 35%

• Quizzes (10 of 11 count) 15%

• Problem sets (3) extra credit 6%

 

To assign letter grades I will use the weighted average of your percentage scores on the midterms, the final, the quizzes, and any problem sets you chose to do, using the above weights. I will then use standard rules for numerical rounding and the following tentative conversion table to give you a letter grade (These are the cutoffs I expect – in case the class deviates greatly from my expectation, I may lower them some. I will not raise them.):

percent

letter grade

90.0 –

A

86.0 – 89.9

A–

82.0 – 85.9

B+

76.0 – 81.9

B

72.0 – 75.9

B–

68.0 – 71.9

C+

62.0 – 67.9

C

58.0 – 61.9

C–

54.0 – 57.9

D+

48.0 – 53.9

D

44.0 – 47.9

D–

– 43.9

F

Attendance

Attendance is essential for success in this class. This is a hard class where the material builds up gradually during the semester. Falling behind can have long-lasting implications. I will take attendance at the lectures, and I will ask you to explain why you missed classes. But attendance will not automatically count toward your grade. I will use the information for monitoring your progress, help me decide whether or not to grant special requests, and for similar purposes.

Policies

Part of your responsibility as a UT student is to attend classes and take notes. This is an essential part of the learning process. I will post on the Blackboard site some lecture materials, but not detailed lecture notes for every class.

The dates of the two midterm exams and the final, as well as the problem set and quiz deadlines are fixed. Missed exams generally will be treated as zeroes; only serious and substantiated medical or personal emergencies may be accepted as legitimate excuses for a missed exam. No exceptions will be made for athletes on the road, job interviews, spring break travel, or other non-academic activities. If you are aware of the problem in advance, your excuse will be accepted only if you notify me at least a day in advance. If you miss a midterm for a legitimate reason, then its weight will be shifted to the final. If a legitimate conflict arises with respect to the time of the final exam, you must notify me at least three days in advance. I may shift the weight of the final to the midterms or I may allow you to take the final exam given to the other section. Otherwise, University policy requires that you take the final exam that is assigned to the unique number that you are signed up for.

The two midterms are given on Wednesday evenings 7:00 – 9:00 pm (2/17 and 3/31), outside of class time. If you currently have a conflict with these times, you need to notify me by email before Monday 2/25, so we can make special arrangements. Otherwise you should treat these times as class times, and avoid scheduling conflicting activities. To compensate for the extra time used for the midterms, I will cancel three lectures at strategic times during the semester. See the timetable for the cancellations.

If you believe that your problem set or exam was graded incorrectly, you can ask me for a re-grade. The TAs cannot change a score, once it is assigned. You must submit your entire exam or problem set to me with a written explanation of the mistake you think occurred. I will then grade the entire exam or problem set again. Note that this procedure may actually lower your score as well as increase it.

Any student with a documented disability (physical or cognitive) who requires academic accommodations should contact the Services for Students with Disabilities area of the Office of the Dean of Students at 471-6259 (voice) or 471-4641 (TTY for users who are deaf or hard of hearing) as soon as possible to request an official letter outlining authorized accommodations.

Students who violate University rules on scholastic honesty are subject to disciplinary penalties, including the possibility of failure in the course and dismissal from the University. Since dishonesty harms the individual, fellow students, and the integrity of the University, policies on scholastic dishonesty will be strictly enforced.

The main purpose of these policies is fairness. I believe in rewarding those people who take their responsibilities seriously.

Important dates date

important events

tentative due dates (check Blackboard for updates)

1/20 W

1.

1/22 F

2.

1/25 M

3.

Q 1

1/27 W

4.

1/29 F

5.

2/1 M

6.

Q2

2/3 W

7.

2/5 F

8.

2/8 M

9.

Q3

2/10 W

10.

2/12 F

11.

Problem Set 1

2/15 M

12.

Q4

2/17 W

Midterm 1 JGB 2.324 7-9 pm

13.

2/19 F

no lecture

2/22 M

14.

2/24 W

15.

2/26 F

16.

3/1 M

17.

Q5

3/3 W

18.

3/5 F

19.

3/8 M

20.

Q6

3/10 W

21.

3/12 F

no lecture

3/15 M

3/17 W

3/19 F

3/22 M

22.

3/24 W

23.

3/26 F

24.

Problem Set 2

3/29 M

25.

Q7

3/31 W

Midterm 2 WEL 3.502 7-9 pm

26.

4/2 F

no lecture

4/5 M

27.

4/7 W

28.

4/9 F

29.

4/12 M

30.

Q8

4/14 W

31.

4/16 F

32.

4/19 M

33.

Q9

4/21 W

34.

4/23 F

35.

4/26 M

36.

Q10

4/28 W

37.

4/30 F

38.

5/3 M

39.

Q11

5/5 W

40.

5/7 F

41.

Problem Set 3

5/14 F

Final exam 9:00 – 12:00 for unique number 33590 (11:00 – 12:00)

5/17 M

Final exam 9:00 – 12:00 for unique number 33585 (10:00 – 11:00)

ECO 320L • Macroeconomic Theory

33590 • Spring 2010
Meets MWF 1100-1200 UTC 3.122
show description

THEORY OF THE DETERMINATION OF NATIONAL INCOME, EMPLOYMENT, AND THE PRICE LEVEL, WITH POLICY IMPLICATIONS. REQUIRED OF STUDENTS MAJORING IN ECONOMICS.

PREREQUISITE: ECONOMICS 420K WITH A GRADE OF AT LEAST C-.

The purpose of this course is to further students' understanding of the central ideas of macroeconomics.  We will study long-run economic growth and short-run economic fluctuations.  Once we have a basic understanding of these phenomena, we will discuss the main macroeconomic tools of the government, fiscal policy and monetary policy.  By the end of the semester, students should be able to critically read articles on current economic issues that appear in publications such as The New York Times, The Wall Street Journal, and The Economist.

ECO 320L • Macroeconomic Theory

33080 • Spring 2009
Meets MWF 1000-1100 UTC 3.122
show description

THEORY OF THE DETERMINATION OF NATIONAL INCOME, EMPLOYMENT, AND THE PRICE LEVEL, WITH POLICY IMPLICATIONS. REQUIRED OF STUDENTS MAJORING IN ECONOMICS.

PREREQUISITE: ECONOMICS 420K WITH A GRADE OF AT LEAST C-.

The purpose of this course is to further students' understanding of the central ideas of macroeconomics.  We will study long-run economic growth and short-run economic fluctuations.  Once we have a basic understanding of these phenomena, we will discuss the main macroeconomic tools of the government, fiscal policy and monetary policy.  By the end of the semester, students should be able to critically read articles on current economic issues that appear in publications such as The New York Times, The Wall Street Journal, and The Economist.

ECO 320L • Macroeconomic Theory

33085 • Spring 2009
Meets MWF 1100-1200 UTC 3.122
show description

THEORY OF THE DETERMINATION OF NATIONAL INCOME, EMPLOYMENT, AND THE PRICE LEVEL, WITH POLICY IMPLICATIONS. REQUIRED OF STUDENTS MAJORING IN ECONOMICS.

PREREQUISITE: ECONOMICS 420K WITH A GRADE OF AT LEAST C-.

The purpose of this course is to further students' understanding of the central ideas of macroeconomics.  We will study long-run economic growth and short-run economic fluctuations.  Once we have a basic understanding of these phenomena, we will discuss the main macroeconomic tools of the government, fiscal policy and monetary policy.  By the end of the semester, students should be able to critically read articles on current economic issues that appear in publications such as The New York Times, The Wall Street Journal, and The Economist.

Publications

"Destabilizing Effects of a Successful Stabilization: A Forward-Looking Explanation of the Second Hungarian Hyperinflation." Economic Theory, 15(3), (May 2000), pp. 599-630.

Abstract:
The extreme severity of the second Hungarian hyperinflation is argued to be related to the unusual way in which the inflation was eventually stabilized. The historical features of this episode are represented in a general equilibrium model, which incorporates a transition from one monetary regime to another. During the inflation the government finances a fixed deficit with seigniorage revenue. After the stabilization the government budget is balanced and the central bank engages in a program of subsidized lending to the private sector. Stabilization is achieved by targeting a low inflation rate path through adjustments in the quantity of central bank lending. I show that under this stabilization policy (1) the dynamic equilibrium path of the economy is indeterminate and (2) arbitrarily high pre-stabilization inflation rates are possible.

Full text from SpringerLink (UT)

Dynamic consequences of stabilization policies based on a return to the gold standard. Journal of Economic Theory, 99(1-2), (Jul 2001), pp. 143-186.

Abstract:
Prior to the 1930’s rapid inflations often occurred in conjunction with wartime finance, and were commonly halted by imposing or re-imposing a gold standard. In a general equilibrium framework I study the consequences of different methods of gold resumption for the dynamic path of the economy, including the behavior of the price level and the welfare of economic agents. In particular, I examine the implications of varying (a) the length of time between the end of the war and the return to gold; (b) the par at which gold convertibility is re-established; and (c) whether or not the government accumulates gold reserves over an extended period of time before the stabilization.

I show that a gradual post-war deflation, which permits resumption of gold convertibility as scheduled, can occur even if the money supply is not contracted and the government does not actively accumulate gold reserves. Furthermore, different policy choices regarding the resumption plan affect not only the speed of postwar deflation, but also the speed of the wartime inflation. In terms of welfare, I find that wartime generations unanimously prefer rapid resumption at high parity, while among postwar generations borrowers and lenders often have opposing interests, but on average they tend to benefit from delaying resumption and devaluing the currency.

Full text from Elsevier's ScienceDirect (Subscription)

An Optimization Approach to Apparel Sizing (with Charles E. McCulloch and Susan P. Ashdown). Journal of the Operational Research Society, 49(5), (May 1998), pp. 492-499.

Abstract:

A novel approach for the construction of apparel sizing systems is formulated. As a first step to this process, efficient sizing systems are defined based on a mathematical model of garment fit. Nonlinear optimisation techniques are then used to derive a set of possible sizing systems using multidimensional information from anthropometric data. The method is illustrated by developing a sizing system designed for a dress shirt of a military uniform using anthropometric data from the US Army. Results of this analysis show that endogenous size assignment and selection of disaccommodated individuals, together with relaxation of the requirement of a `stepwise' size structure, results in substantial improvements in fit over an existing sizing system. The proposed methodology enables the development of sizing systems that can either increase accommodation of the population, reduce the number of sizes in the system, or improve overall fit in accommodated individuals.

Full text from JStor (UT)

Working Papers

Optimal Banking Arrangement in an Economy with Short-term Foreign Debt

 (with Eunsook Seo). (Sep 2004).

Monopoly versus Competition in Banking: Some Implications for Growth and Welfare

(with Bruce D. Smith and Ke Wang).

Joint Liability Contracts without Asymmetric Information

(with Thomas E. Wiseman).

The Sub-optimality of the Friedman Rule and the Optimal Quantity of Money

(with Bruce D. Smith).

Measuring the Inflation of Parallel Currencies

An Empirical Reevaluation of the Second Hungarian Hyperinflation.

Teaching

Intermediate Macro - ECO 320L

Previously Taught:

  • Spring 2004 -- ECO320L
  • Spring 2005 -- ECO320L
  • Spring 2006 -- ECO320L
  • Fall 2006 -- ECO320L
  • Spring 2007 -- ECO320L
  • Spring 2008 -- ECO320L
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