PRINCIPLES OF MACROECONOMICS Class webpage: ~ COURSE DESCRIPTION ~
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1 PRINCIPLES OF MACROECONOMICS Class webpage: Tel: (802) Office: 335, Old Mill Office Hours: Tuesdays &Thursdays4:00-5:00 or by appointment. ~ COURSE DESCRIPTION ~ MAIN TOPICS COVERED This course is an introduction to a part of economics called Macroeconomics, which looks at the economy as a whole. It is organized around three sections: 1) Macroeconomics: Issues and Data What does macroeconomics study? What are Production, unemployment and inflation? How to measure them? What do they mean? 2) The economy in the long run We study the links between economic growth productivity and living standards. We study and explain the trends in wages and unemployment. We explain the links between saving investment and flows of capital. We look into the process of money creation and how money relates to inflation. 3) The economy in the short run We study the Keynesian cross model to explain expansions and recessions. We study the Aggregate Demand - Aggregate Supply model to understand the effects of fiscal and monetary policies on output and inflation. 4) If we cover the material faster than expected and have extra time we will study a fourth section related to the determination of exchange rates. OBJECTIVE Introduction to macroeconomic topics, data, and simple models in order to better understand current economic issues. COURSE REQUIREMENTS All the tests cover the textbook selected chapters as well as the articles and homework assignments (No calculator, notes or books allowed for the in-class tests).
2 The homework assignments have to be returned in class at the due date. Since the homework solutions are posted online, late homework cannot be accepted. - Homework (20% of the quarter performance). Posted on the class Webpage. - Midterm 1 (25% of the quarter performance) - Midterm 2 (25% of the quarter performance) - Final (30% of the quarter performance). Comprehensive exam. Course requirement Weighting 1 Weighting 2 Weighting 3 Homework 20% 20% 20% Midterm1 0% 50% 25% Midterm2 50% 0% 25% Final exam 30% 30% 30% Your final grade is calculated using the three weighting schemes. The highest score determines your grade for the semester. In case you miss one of the midterms, your semester grade is automatically calculated with a weight of 50% on the other midterm. You are expected to attend al lectures. Exams are essentially lecture based. Therefore, missing lectures would seriously put you at risk of failing this class. You are responsible for checking the class website every week. It contains course outlines and homework material as well as important announcements for the class. In case we have visitors, you will be required to prepare questions. This preparation will be graded as extra credit. READING Textbook (see provisional course schedule): Principles of Macroeconomics 4/e by Frank and Bernanke Articles Press articles that illustrate or extend the issues covered in class.
3 ~ PROVISIONAL COURSE SCHEDULE ~ Week dates Reading 1 08/31-09/04 Ch /07-09/11 Ch 5 Article: Lessons from 1937 Articles: Bhutan, US vs. European living standards The quiet Americans Lost decade Unemployment news BLS 3 09/14-09/18 Sep 14 Add Drop date Ch 6 Article: Inflation outlook 4 09/21 09/25 Ch /28 10/02 Ch 8 CPI news BLS Article: American productivity growth and skilled labor force Article: A century of work and leisure, Globalisation and wages Myths and migration, Displacement activity 6 10/05 10/10 Oct 6: Midterm 1 Ch 9 Articles: US saving 7 10/12 10/16 Ch 9-10 Article: The credit crunch, Fed s interventions FOMC meetings 8 10/19 10/23 Ch Article: US shopping
4 9 10/26 10/30 Ch Articles: Bank crisis patterns 10 11/02 11/06 Nov 5: Midterm 2 Nov 6 last day to withdraw Ch 12 Article: Home truth, History of modern finance 11 11/09 11/13 Ch /16 11/20 Ch 14 Articles: Unpleasant but essential America s bailout plan Article: Taylor rule 13 11/23-11/24 Nov 23 Thanksgiving Ch 15 Articles: Beyond crisis management 14 11/31 12/04 Ch /07 12/08 Ch 17 (?) 16 FINAL 03:30 PM - 06:30 PM, Monday Dec, ; WILLMS 301 Articles: Unorthodox Economic Policies, Defending Macro A: Score superior to 90% B: Score between 80 and 90% C: Score between 70 and 80% D: Score between 60 and 70% F: Score below 60% ~ GRADES~
5 ~ POLICIES~ You absolutely need to be aware of UVM policies by reading the UVM Rights and Responsibilities of Undergraduate Students below as well as The Cat s Tale. I also have a few specific guidelines, consistent with UVM policies: Absences: - For unexpected absences, accepted excuses with adequate documentation are: Dean s office excuse, unplanned athletic competition. - If a student is not present at the date and time of a test without an accepted excuse, he/she gets a grade of zero. 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. 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). - Any question? Concern? Worry? Etc: TALK TO ME! Classroom Code of Conduct: - 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 my authorization to talk. Students should not interrupt each other. - I expect students to focus, participate and take notes during class.
6 UVM Rights and Responsibilities of Undergraduate Students Classroom Code of Conduct Faculty and students will at all times conduct themselves in a manner that serves to maintain, promote, and enhance the high quality academic environment befitting the University of Vermont. To this end, it is expected that all members of the learning community will adhere to the following guidelines: 1. Faculty and students will attend all regularly scheduled classes, except for those occasions warranting an excused absence under the University Attendance Policy (e.g., religious, athletic, and medical). 2. Students and faculty will arrive prepared for class and on time, and they will remain in class until the class is dismissed. 3. Faculty and students will treat all members of the learning community with respect. Toward this end, they will promote academic discourse and the free exchange of ideas by listening with civil attention to comments made by all individuals. 4. Students and faculty will maintain an appropriate academic climate by refraining from all actions that disrupt the learning environment (e.g., making noise, ostentatiously not paying attention, and leaving and reentering the classroom inappropriately). Attendance Policy Students are expected to attend all regularly scheduled classes. The instructor has the final authority to excuse absences. It is the responsibility of the instructor to inform students of his or her policy for handling absences and tardiness, and the penalties that may be imposed. Notification should be done both verbally and in writing at the beginning of each semester. It is the responsibility of the student to inform the instructor regarding the reason for absence or tardiness from class, and to discuss these with the instructor in advance whenever possible. The instructor has the right to require documentation* in support of the student's request for an excuse from class. If an out-of-class exam is scheduled which conflicts with a regularly scheduled class, the regularly scheduled class has priority. The instructor has the right to disenroll any student from a course if that student (1) does not meet the prerequisites of the course, or (2) fails to attend a scheduled course by the third instructional day of a semester or the second scheduled class session of a course, whichever comes later, unless the student has notified the instructor and has been excused. To disenroll students the instructor must notify the Registrar, who will remove the student's name from the class list and the course from the student's schedule. The student is responsible to determine whether or not she or he is enrolled in a class. * When a student is unable to attend class for a health reason, the student may give permission for the instructor to discuss the situation with a representative from the Center for Health and
7 Wellbeing. As with all absences, the faculty member has final authority to excuse students from classes. Athletic-Academic Conflicts Students participating in inter-collegiate athletics should plan their schedules with special care, recognizing the primary importance of all of their University academic responsibilities. Each semester, members of UVM varsity and junior varsity teams are responsible for documenting in writing any conflicts between their planned athletic schedule and the class schedule to their instructors by the end of the second full week of classes. Students and instructors should then discuss potential conflicts between course requirements and intercollegiate competitions. When an unavoidable conflict exists, the student and instructor should seek a resolution which permits the student to address the course requirement and participate in the athletic competition. The instructor has final authority on this matter. Religious Holidays Students have the right to practice the religion of their choice. Each semester students should submit in writing to their instructors by the end of the second full week of classes their documented religious holiday schedule for the semester. Faculty must permit students who miss work for the purpose of religious observance to make up this work. Each student is held responsible for knowledge and observance of these rules and regulations, including those concerned with academic honesty. Please refer to the Code of Student Rights and Responsibility, Alcohol and Drug-Student at: Web site 33. Academic Integrity The principal objective of the Academic Integrity Code is to promote an intellectual climate and support the academic integrity of the University of Vermont. Academic dishonesty or an offense against academic honesty includes acts that may subvert or compromise the integrity of the educational process. Such acts are serious offenses that insult the integrity of the entire academic community. Each student is responsible for knowing and observing this code. Please review the Academic Integrity Code at Web site.
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