JEB115 - Macroeconomics II
|Status:||Bachelors - All
BEF - core
Semester - summer
|Obligatory courses:||JEB114 - Macroeconomics I
|Course supervisors:|| doc. Roman Horváth Ph.D., ČSOB Corporate Chair
|Teachers:|| doc. Roman Horváth Ph.D., ČSOB Corporate Chair
|Assistants:|| Mgr. Magdalena Patáková
|Schedule:||The classes start on 18.02.2013 and end on 17.05.2013 Lectures: Tuesday, 08:00 - 09:20 (room #314) Exercise sessions: Wednesday, 08:00 - 09:20 (room #105); Wednesday, 09:30 - 10:50 (room #314) Office hours: Wednesday, 14:00 - 15:00 (Vahagn Jerbashian)|
|Announcements:||Please make sure to follow the web-page that I have set up for this course: http://home.cerge-ei.cz/vahagn/teaching/JEB115.html|
|Literature:||N. Gregory Mankiw (2010). Macroeconomics (7th Edition). Worth Publishers.
Student resources are accessible at http://bcs.worthpublishers.com/mankiw7
Partly, we will also cover the update of this textbook that has an ambition to reflect the current global financial crisis:
Ball, L. and N.G. Mankiw (2011) A New Approach to Intermediate Macroeconomics, Worth Publishers.
Student resources are accessible at
|Description:||This is the second part of the Macroeconomics course. At the intermediate level it presents and analyzes questions related to aggregate demand and supply, and short run fluctuations. Its core is the (simplified) IS-LM model. Within the frames of this model this course analyzes the possible drivers of short run fluctuations. It suggests the policy instruments and regimes that can mitigate those fluctuations. The course also provides examples that map theoretical arguments presented in the class to the current processes in the real world.
Upon successful completion of this course, students will be able to better understand the short run functioning of economic systems and to discern the possibilities and limits of economic theories. Students will also be able to employ basic quantitative techniques to model aggregate economic phenomena.
|Content:||Weeks 1 and 2:
Consumption - Keynesian consumption function; Fisher's model; Life cycle hypothesis; Permanent income hypothesis; Random walk;
Investment - Business fixed investment; Residential investment; Inventory investment.
Chapters 17 and 18 from Mankiw (2010); 16 and 17 from Mankiw (2003)
Money; Money market; Inflation; Interest rate.
Chapters 4 and 19 from Mankiw (2010); 4 and 18 from Mankiw (2003)
Weeks 4 and 5:
Introduction to economic fluctuations - Aggregate demand and aggregate supply model; Theory of aggregate demand; IS-LM model.
Chapters 9 and 10 from Mankiw (2003, 2010)
Weeks 6 and 7:
Aggregate demand II - Explaining fluctuations with IS-LM model; Changes in fiscal policy; Keynesian multiplier and the crowding out effect; Monetary policy in IS-LM model; IS-LM as a theory of aggregate demand.
Chapter 11 from Mankiw (2003, 2010)
The open economy.
Chapter 5 from Mankiw (2003, 2010)
Weeks 9 and 10:
Aggregate demand in an open economy - The Mundell-Fleming model (IS*-LM* version); Efficiency of economic policies under floating and fixed exchange rate regimes; Theory of the interest rate parity;
Aggregate Supply - Sticky wage model; Lucas model; Sticky price model: Phillips curve.
Chapters 12 and 13 from Mankiw (2003, 2010)
Weeks 11 and 12:
A dynamic model of aggregate demand and aggregate supply
Chapter 14 from Mankiw (2010); [partly covered in Chapter 19 from Mankiw (2003)]
Chapter 15 from Mankiw (2010); Chapter 14 from Mankiw (2003)
|Examination dates:||HW 1 is currently scheduled on 02.04.2013 with a deadline on 10.04.2013;
HW 2 is currently scheduled on 07.05.2013 with a deadline on 15.05.2013;