Undergraduate Teaching Aid: Office: 236, Old Mill Office Hours: Tuesdays 2:30-3:30 and Thursdays :30
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1 PRINCIPLES OF MACROECONOMICS Office: 335, Old Mill Office Hours: Mondays & Wednesdays 1:45-2:45 or by appointment. Tel: (802) Undergraduate Teaching Aid: Office: 236, Old Mill Office Hours: Tuesdays 2:30-3:30 and Thursdays :30 Class webpage: connect.macgraw-hill.com (See registration instructions) ~ COURSE DESCRIPTION ~ MAIN TOPICS COVERED This course is an introduction to a field of economics called Macroeconomics, which looks at the behavior of the economy as a whole. It is organized around four sections: Macroeconomics: Concepts, issues and data The initial goal of this course is to understand how economists think and what they study. After introducing a few core principles (such as the cost-benefit principle), we define and explore production, unemployment and inflation. How do economists measure them? What do they mean? What is the recent evolution of production, unemployment and inflation? The economy in the long run The behavior of the economy over very long periods of time can be described with economic growth. Why are economists interested in economic growth? What are the determinants of growth? In this course, we study the links between economic growth, productivity and living standards. We also study financial markets. What are financial markets? What happens when financial markets do not function properly? We look into the 2008 financial crisis. Third, we describe the financial system, the process of money creation, and how money growth relates to inflation. The economy in the short run Expansions and recessions are situations that generally last for short periods of time. What are the causes of recessions or expansions? How to fight a recession? We study the Aggregate Demand - Aggregate Supply model to understand the effects of fiscal and monetary policies on output and inflation in the short and the medium run. We relate recent government policies to economic theory.
2 The international economy When we have extra time at the end of the semester, we study a fourth section related to the determination of exchange rates, international trade and capital flows. OBJECTIVE Introduction to macroeconomic topics, data, and a few basic models, in order to better understand current economic issues. Use of the best online learning tools to enhance understanding and mastering macroeconomics. COURSE REQUIREMENTS On line homework assignments: Weigh 25% of the semester performance. Homework is composed of non-graded and graded assignments. Midterm 1, midterm 2 and final exam: Each weighs 25% of the semester performance. They are not cumulative. The lowest homework assignment grade is dropped. The homework assignments need to be completed on line by the deadline. There is about one assignment per chapter. Homework due dates and codes are given in class. In case there is a departmental assessment, this will be included in the homework grade and weigh 1%. Extra-credit opportunities are only announced in class. They generally relate to press articles to summarize and return to the UTA in class at the due date. In case we have a visitor, you will be required to prepare questions. This preparation will also be graded as extra credit. You are expected to attend all lectures. Homework and exams are essentially lecture based. Furthermore, necessary information to complete homework assignments as well as extra credit opportunities are only announced in class. For those reasons, missing lectures would seriously put you at risk of failing this class. You are responsible for checking the class website every week. READING Textbook + website (mandatory): You will be using the website for your homework assignments, which are graded. You need to register on line for accessing the website. Principles of Macroeconomics with Connect Plus 5th edition, by Robert Frank and Ben Bernanke - either the regular textbook+connect: ISBN: / or the electronic version of the text+ connect: ISBN: /
3 Press articles Articles are used all along the semester to illustrate the principles, concepts and topics studied in class. Examples of those articles are as follows. Sources of the Budget Deficit, Krugman, P., The NYTimes, July This article illustrates the concept of budget deficit by analyzing the discrepancies between forecasts and actual deficits in the US. The productivity gap between Europe and the US: Trends and causes. Van Ark, B. O Mahony, M. and Timmer, M.P., Journal of Economic Perspectives, This article illustrates the concept of productivity by discussing the most recent trends in European and US productivity. The Fed s balance sheet, The Wall Street Journal, This article illustrates recent fundamental changes in the US monetary policy. Draghi Strikes back II, The Economist, Feb This article discusses the role of monetary policy in dealing with the crisis in Europe. ~ PROVISIONAL COURSE SCHEDULE ~ (Chapters from the textbook) Week Dates Reading 1 08/26-08/30 Introduction A few concepts from Chapters 1,2 and /02: Labor day 09/04-09/ /09-09/13 09/09 Add/Drop deadline Chapters 1,2 and 3 Chapter 4: Spending, Income and GDP Chapter 5: Inflation and the Price Level 4 09/16-09/20 Chapter 6: Wages and Unemployment 5 09/23-09/27 Chapter 7: Economic Growth 6 09/30-10/04 09/30: Midterm 1 Chapter 8: Saving Capital Formation and Financial Markets 7 10/7-10/11 Chapter 8: Saving Capital Formation and Financial Markets
4 8 10/14-10/18 Chapter 9: The Financial System, Money and Prices 9 10/21-10/25 Chapter 10: Short term Fluctuations 10 10/28-11/01 10/28: Last day to withdraw Chapter 13: Aggregate Demand and Aggregate Supply 11/01: Midterm /04-11/08 Chapter 13: Aggregate Demand and Aggregate Supply 12 11/11-11/15 Chapter 14: Macroeconomic Policy 13 11/18-11/22 Chapter 15 and 16: The international economy, if time left /25-11/29: Thanksgiving break 15 12/02-12/04 Chapter 15: The international economy, if time left. Friday, December 6 : FINAL EXAM 10:30 am 2:30 pm in Williams 301 ~ GRADES~ I use a standard grade scale from A+ to F: A s: Score superior to 90% B s: Score between 80 and 90% C s: Score between 70 and 80% D s: Score between 60 and 70% F s: Score below 60%
5 ~ POLICIES~ You need to be aware of UVM policies by reading the UVM Rights and Responsibilities of Undergraduate. I also have a few specific guidelines. You can always talk to me during my office hours if you have any questions or concerns. Absences: - For absences on test days, accepted excuses are limited to: Illness documented by the Dean of Students office. Athletic event documented by your coach request University sanctioned events (ex: debate tournament) documented by your supervisor. - Late homework is not accepted. Since the homework solutions are posted online, late homework cannot be accepted. Furthermore, the homework due dates are announced in advance. It is the student s responsibility to complete assignments early to plan for contingencies such as computer related issues, work commitments, athletic event, or university function. - Homework access codes are only announced in class and will not be communicated by to students who miss class. Tardiness: - If the day of a test a student comes late while one of his/her classmates has already completed the test and left the classroom, the late student will not be authorized to take the exam and gets a grade of zero. - Students should arrive prepared for class and on time, and remain in class until the class is dismissed. Important: - If you have a religious, athletic, planned medical conflict, or disability, do not forget to provide me with the university documents within the specified deadlines (see UVM policy). - To ensure the quality of discussions in class, everyone in the classroom needs to act in a respectful way. Students who feel like participating in the discussion need to raise their hand and wait for permission to talk. Students should not interrupt each other. - I expect students to focus, participate and take notes during class.
6 If you have not purchased the material yet, you will be able to do it when you register.
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