Intermediate Macroeconomics

This course expands on the material in Introductory Macroeconomics (Eco 2002). We will examine the economic models of Keynes, the New Keynesian models, mainstream models and recent critiques of these theories, as well as explore policy issues associated with the trade and budget deficits, international capital flows, exchange rates, unemployment and inflation.

A main concern of the course is to examine the so-called impotence of government policy to remedy the most pressing problems of the modern capitalist economy. The instructor acknowledges his view that received wisdom in the dominate macroeconomic theories is heavily determined by class (corporate, labor, citizen, consumer) considerations.

The learning objectives of the course are:

to develop a working knowledge of contemporary macroeconomic concepts and issues.
to achieve an ability to read the financial news and government economic policy pronouncements with a level of understanding that allows for an informed opinion to be established.
to employ basic quantitative analysis to afford a first approximation forecast of macroeconomic variables.
to master competing theories sufficiently to understand their assumptions and the implications for policy embedded within them.

Reading:

Olivier Blanchard. Macroeconomics. 4th ed. Prentice Hall. 2007.
Assigned articles for discussion of controversial issues and general enrichment of our dialogue.

General Course Protocol:

Approximately the first 30 minutes of each class will be devoted to lecture and the remaining 20 minutes in discussion. The discussion period will be devoted to clearing up any confusion regarding the concepts and theories presented during the lecture, relating what we have learned to current economic events and controversies, discussion of homework assignments and student-led discussion of the supplementary readings. Bring your text and assigned readings for the day to each class. Since this is a small seminar and hence an intimate atmosphere, I discourage students from coming late or disrupting discussions or presentations by leaving, or stepping out, during the class. Please inform me ahead of time if you have an obligation that requires your absence or absenting yourself during class. Absences aren't cool.

Most weeks one student will be assigned one of the supplementary readings. This student facilitator will bring a one-page, single-spaced summary of the article or chapter to class (to be turned in to the instructor), make a short presentation and hand out one or two questions for discussion. All students, whether or not they are facilitating, are required to have read the assigned article as well.

Course Requirements:

1. Grading

25% Four Problem Sets (Due on Thursday.)

10% Facilitation/Discussion (as both facilitator and peer)

20% Mid-Term Exam

15% Forecasting Project (information in hand-out)

30% Final Exam

100%

2. Additional useful information

The supplementary readings will be accessible for internet downloading from links on the syllabus herein. Others will be handed out in class, on reserve in the library or in the course folder on the college website. Links to some additional readings may be put up on the website syllabus soon. Look for those. Frequent checking of the syllabus for changes and updates is wise.

I encourage you to work on the problem sets together (in pairs or as a larger group). However, the homework should be your own in that you should have a full grasp of how the answers were derived. This is important because the exams will be, in part, drawn from problems/questions like those in the homework. Please feel free to contact me if you're having problems with the homework.

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