Fall 2022 Syllabus: download

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OPTIONAL Books for the course

1. Mankiw, Macroeconomics, 11th Edition by MacMillan Press.  This is "the" standard macro textbook. Very good and well written.​  I'll reference it and use some sections, but it's optional.

2. Garin-Lester-Sims, Intermediate Macroeconomics by Julio Garin, Robert Lester and Eric Sims. ("GLS Macro").  This is a truly modern macro textbook that is really more of an "advanced undergraduate" macro book than an "intermediate" book. The authors' site is here in case they update.

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Outline, Notes and Readings

For this course, I mostly use my own notes. I will reference the Mankiw text and will also provide links to the relevant GLS chapters as well.

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• Introduction

  • Island and 3 Key Economic Questions All Societies Face

    • HO Setup and Agg Production 2022​

  • ​Practice Problems:

    • None

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• REVIEW Materials

  • Math Review

    • Basic Math, Graphing and Intro to S&D

    • Derivatives in 10 Minutes or Less

    • Geometric Series

    • Percentage Changes “Three Ways to Calculate”

  • Economics Review

    • Review Basic S&D Analysis

    • Review of the Law of One Price

    • Time Paths

    • Review AS-AD Basics

  • ​Practice Problems:

    • Problem Set for Supply and Demand Review

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• Static Allocation/Optimization: Linear Technology

  • Linear Production, Productivity, Technology, Innovation and Comparative Advantage

    • HO Linear Prod MPL Scanned

    • HO Optimal Allocation of Labor Comp Adv.

    • HO Handwritten Notes on Comp Adv.

    • H0 TBD Problems with linear functions and markets

    • READINGS:

      • HO Note on Tech Growth and Labor Allocation in History

  • Practice Problems:​

    • PP 01 Setup and Aggregate Production

    • PP 02 Agg and Disaggregate Production​

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• Static Allocation/Optimization: Concave Technology​

  • Concave Production, CRTS, Marginal Products

    • HO Concave Functions in Economics

    • HO TBD Concavity and Markets​

  • Production possibility frontiers and tradeoffs

    • HO Production Possibility Frontiers

  • Birth of Money

    • HO Transaction Costs and the Birth of Money

    • HO Money and Prices in the Short and the Long Run

    • HO Economic Evolution and Money

    • READINGS:​

      • The Island of Yap (Chap 1 in Milton Friedman's Money Mischief)

      • The Mystery of Money (First pages of Chap 2 in Friedman's Money Mischief)

      • BBC Article on YAP today (2018)

      • Wikipedia's YAP page​

  • Markets and the Role of Prices

    • HO TBD Markets and the Role of Prices

  • Practice Problems:​

    • PP Production Possibilities Frontiers

    • PP Money and Birth of Money

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EXAM 1 (Tuesday, October 4, 2022)

Relevant Practice Problems

PP 01 Setup and Aggregate Production

PP 02 Agg and Disaggregate Production

PP Production Possibilities Frontiers

PP Money and Birth of Money

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• Static Allocation/Optimization: Production and Consumer Choices​

  • Utility Maximization Part 1

    • HO UMPS Static

  • (REVIEW from earlier) Concave Production, CRTS, Marginal Products

    • HO Concave Functions in Economics

  • NeoClassical Theory of Income Distribution

    • HO Distribution of Income Conclusion

  • READINGS

    • Mankiw Chapter 3 - National Income: Where It Comes From and Where It Goes

    • HO Distribution of Income Broader Thoughts

  • Practice Problems:​

    • PP Utility Maximization

    • PP Distribution of Income

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EXAM 2: Thursday, November 3, 2022

Relevant Practice Problems

PP Utility Maximization

PP Distribution of Income

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• Dynamic Allocation/Optimization​

  • Solow Growth Model

    • HO 2019 Solow Growth Handwritten Notes

    • READINGS:

      • Mankiw Chapter 8 – Capital Accumulation as a Source of Growth

      • GLS 2021 Chap 4 Growth Facts

      • GLS 2021 Chap 5 Solow Growth Model

    • Practice Problems:​

      • PP Solow Growth Model

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• Monetary Policy

  • The Challenge of Monetary Policy, the Phillips Curve and Losing Control

    • In class presentation using AS-AD analysis​

      • Monetary Policy and AS-AD: Pt 1 - The Phillips Curve​

      • Monetary Policy and AS-AD: Pt 2 - Loosing Control

      • Better Written Typed: "Dangerous Expectations"

  • Traditional Theory of Money: MV=Py

    • HO Money and Prices SR vs LR

    • A First Monetary Rule: Friedman's k-percent rule (set %M = %y^FE + k)

  • Money Market Basics

    • HO Nominal Money Market

    • Chris Youtube Videos​: "The Nominal Money Market" or "The Market for Nominal Money Balances"

      • ​​Money Market 1: Money Demand

      • Money Market 2: Graphing Money Demand

      • Money Market 3: Money Supply

      • Money Market 4: Equilibrium

      • Money Market 5: Short Run Analysis

      • Money Market 6: Long Run Analysis

      • Money Market 7: Time Paths

      • Money Market 8: Growth Rate of Money Part 1

      • Money Market 9: Growth Rate of Money Part 2

  • Modern Monetary Policy: Taylor Rules and New Keynesian Views

    • The idea of Interest Rate Rules​

  • Practice Problems:​

    • PP Money and Money Markets 2022

  • Interest Rates, Euler and Limits to Using Interest Rates: Utility Max Part 2: Markets Over Time and the Role of the Interest Rate

    • HO UMP Dynamic Euler

  • Practice Problems:​

    • PP Dynamic Utility Max and the Euler Equation

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• (Optional) Fiscal Policy

  • Congressional Budget Office

  • HO Government Budget Constraints

  • HO On Government Debts and Deficits

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EXAM 3: December 8th, 2022

Relevant Practice Problems

PP Solow Growth Model

PP Money and Money Markets 2022

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