Cameron Hall 220 S
University of North Carolina Wilmington
601 South College Road
Wilmington, NC 28403

Prof. Dr. Peter Schmidt
Economics & Statistics
 Summerterm II 2011

28 July 2011

Principles of MACRO Economics / Economic Policy ECN 222

Syllabus

Reading:
- Main text: Case Fair OsterPrinciples of Macroeconomics” 10th ed.
-
additional: Gregory Mankiws "Ten Principles of Economics" (chapter 1)
All tests are closed book exams, no material is permitted --> mobile phones are strictly forbidden!!

Schedule (preliminary - changes may occur and will be announced in class and in the following table):

  

18 Alternative Views in Macroeconomics
No
Day
Book Chapter
Topics
Further material
1
Wed 29 June
(Mankiw chap. 1)

Introduction and 10 Principles of Economics
- Basic Questions: Why Economics?
  -> Basic Concepts of Economics

- Welcome.ppt
- Teamwork about Mankiws "Ten Principles of Economics" and excerpt from B. Obama "The Audacity of Hope" (p. 176-184) (also see a debate in the Economist)

2
Thu 30
(Mankiw chap. 1)
Introduction: Basic problems; economic systems Hierarchy of goals in market economies
- "Wall Street" (1987) @ Wikipedia
; "Greed is good" speech on Youtube or a commented version with highlighted texts.
3
Tue 5 July

Teams' Presentation about Mankiws "Ten Principles of Economics"

PART II Concepts and Problems in Macroeconomics
5 Introduction to Macroeconomics

Please use the online resources, tests and case studies on the book webpage (see above)
4
Wed 6

5 Introduction to Macroeconomics

6 Measuring National Output and National Income

Debate in the Economist about GDP as a measure of welfare.

5
Thu 7

6 Measuring National Output and National Income

7 Unemployment, Inflation, and Long-Run Growth
(discussed up to the definition of the labor force (participation rate) and the unemployment rate, page 130, slide 8)

 
6

Mon 11
(room A 123)

Test 1

- Brief repetition and your questions

- Test 1 with 75 questions (up to chapter 7 - only rates, see above)

results by ID numbers (available after class)
7
Tue 12
(room A 123)

                (brief review of test 1)
7
Unemployment, Inflation, and Long-Run Growth


PART III The Core of Macroeconomic Theory

8 Aggregate Expenditure and Equilibrium Output

Annenberg Video @ learners.org:
5. John Maynard Keynes
8
Wed 13
(room A 123 pc lab)

8 Aggregate Expenditure and Equilibrium Output

Teamwork in the pc lab (see tasks in table below) ->

 Some sources of data and information:
o U.S. Department of Commerce: www.commerce.gov
o Bureau of Economic Analysis: www.bea.gov
o Bureau of Labor Statistics: www.bls.gov
o Federal Reserve System: www.federalreserve.gov
o The World Factbook (CIA): www.cia.gov/library/publications/the-world-factbook
o For data on Europe, visit europa.eu (European Union home page) and
o the European Central Bank home page on www.ecb.int.
o International sources include the
  International Monetary Fund www.imf.org
  and the World Bank www.worldbank.org
9
Thu 14
(room A 123)
9 The Government and Fiscal Policy
+  Short presentations of the results of yesterdays teamworks
10
Mon 18
back in room A 110
9 The Government and Fiscal Policy
 Annenberg Video @ learners.org:
5. John Maynard Keynes
11
Tue 19

Final discussion of:
9
The Government and Fiscal Policy
(current situation and exercises)

(some exercises in class: Class_exercises_chapters_7and9.doc and answers to index/inflation questions in Class_exercises_chapters_7and9.xlsx)

12
Wed 20
Test 2

- Brief repetition and your questions

- Test 2 with 75 questions (chapters 7(rest) -9)

- Results_test2.pdf
- aggregate results after tests 1 and 2.pdf
13
Thu 21 10 The Money Supply and the Federal Reserve System - Federal Reserve Bank (Monetary Policy -> Policy Tools)
for example: FOMC: Press Conference on June 22, 2011, and brochure "The Federal Reserve System: Purposes and Functions"
14
Mon 25 10 The Money Supply and the Federal Reserve System

+ Material about monetary policy (Mankiw, Macroeconomics)
+ "How long is a string?" Monetary_Aggregates_UK-ECB

15
Tue 26

10 The Money Supply and the Federal Reserve System

11 Money Demand and the Equilibrium Interest Rate

Overview (blackboard): Money Market; Money Demand in (Neo-) Classic / Monetarist View

16
Wed 27

11 Money Demand and the Equilibrium Interest Rate
   Contemporary Monetary Policy: Fed vs. EC
B

12 Aggregate Demand in the Goods and Money Markets

- Federal Reserve Bank (Monetary Policy -> Policy Tools)
17
Thu 28

12 Aggregate Demand in the Goods and Money Markets
-> Simultaneous Equilibrium on all markets in the IS/LM model

 

Contemporary Monetary Policy: Fed vs. ECB

 

Summary and YOUR QUESTIONS !!!

- Federal Reserve Bank (Monetary Policy -> Policy Tools)
- European Central Bank ECB (History, Organisation, Targets and Instruments)

 Study Abroad!
An invitation to the World, esp. (Hochschule) Bremen ;-)

at UNCW/Cameron see http://csb.uncw.edu/global/index.htm
and/or talk to Dr. Rebecca Porterfield

  (outlook to pick single topics of interest do discuss)
13
19/20

13 Aggregate Supply and the Equilibrium Price Level

15 Financial Crises, Stabilization, and Deficits

PART V The World Economy (Outlook)

(19 International Trade, Comparative Advantage, and Protectionism)

20 Open-Economy Macroeconomics:
The Balance of Payments and Exchange Rates

alternatively: Limits to Growth:
 Wiki: First edition (1972), 2004 Limits to Growth: The 30-Year Update, webpage - all by Dennis Meadows and others
- Dennis Meadows at the Population Institute (video part 1)
- Dennis Meadows at the Population Institute (video part 2 - start at 5.50)
(Ex)
Friday 29
2pm
- 5 pm
Test 3
Final Test with 75 questions (chapters 10 and 11 plus additional topics discussed in class, esp. 12.1 (investment demand) and general terms about the links between goods and money markets / fiscal and monetary policy) please check UNCW website

 

TEAMwork: (most of the teamwork will be assigned homework but some might take place in class).

           Team:
Date:
(All students)
1
2
3
4
5
6
NAMES of
team members: Kasey Rouse
Thomas O'Connor
Peter Thimios
Jekelyn Huber
Chris Allen
Nicholas Humann
Amy Hallstrom
Jose Nunez
Adam Smith
Pamela Bittner
Alyssa Bearden
Danielle Conway
Risa Moore
Stephen Schaefer
Kevin Petersen
Kyle Hamblin
Marcus Varsano
Anthony Dawkins
Chris Ward
Culen Wilson
Kristen Pascoe
David Harris
Brian Graham
Frank Wolfgram
Daytona Bordeaux
Kaleigh Register
Tyler McPherson
Kenny Rich
Lauren Keifer
Ashley Smith
Jared Bryant
Lisa Elkan
Wayne Merrit
Wed 29 June

no tasks, Mankiws "Principles" in class:

Your transparencies

1-2
3-4
5-6
7-8
9-10
Tue 5 July

Mankiw: "Problems and Applications"
ALL-> Nr. 17 ONE exampe !

14 (+1 ex. for 17)
13 (+1 ex. for 17)
12 (+1 ex. for 17)
8 (+1 ex. for 17)
3 (+1 ex. for 17)
1 (+1 ex. for 17)
 Wed 13 July

Teamwork in PC lab:
Each team please produces a ppt file, some of which will be presented in class.
Please download data and copy them into an Excel file to produce tables and graphs.

 For 5 US states of your choice, find:
- GDP
- National (disposable) Income
- (private final) Consumption
  For 5 US states of your choice, find:
- GDP
- National (disposable) Income
- (private final) Consumption
  For 5 US states of your choice, find:
- GDP
- National (disposable) Income
- (private final) Consumption
  For 5 US states of your choice, find:
- GDP
- National (disposable) Income
- (private final) Consumption
  For 5 US states of your choice, find:
- GDP
- National (disposable) Income
- (private final) Consumption
  For 5 US states of your choice, find:
- GDP
- National (disposable) Income
- (private final) Consumption
 Wed 13 July Find the 10 … countries of the world:
 biggest area  biggest population biggest GDP  biggest GDP/capita  smallest GDP  smallest GDP/capita 
 Wed 13 July

Consumption Function:
Find a time series of (at least 15 years or quarters – better more)
National (disposable) Income and (private final) Consumption

Perform a regression analysis of the Consumption function

 USA
Germany
Japan
China
Russia
Mexico

 

Further links:

International and Global Economics:

Data Sources:

Bremen University of Applied Sciences
Department of Business Studies (SIB)
Economics & Statistics